Electric vehicle maker Wanxiang Group signed an agreement with US lithium battery producer Enerl on Jan 18 to form a joint venture to make batteries for electric vehicles.

Chinese media report that the operation will be located in a 550,000-square-meter plant in Hangzhou where Wanxiang Group is based.

Production capacity is expected to reach 40,000 electric vehicle batteries by 2014.

The Chinese side will hold a 60 percent share in the joint venture and provide capital and facilities. It is also expected to bring in clients including State Grid Corp, Shanghai Automotive Industry Corp, Dongfeng Automotive Corp and Guangzhou Automobile Industry Group.

Enerl, with the remaining 40 percent share, will provide intellectual property rights and technological support.

Editor: Xie Fang