SHANGHAI, Dec 21 (SMM) - The leading power battery producer Gotion High-tech noted that its overseas wholly-owned subsidiary GOTION, INC. becomes a supplier of a listed automaker in American. To further deepen the cooperation, U.S. Gotion and the customer recently signed the "Strategic Supply and Localization Agreement” in the hope of reaching a strategic cooperation in the supply and procurement of LFP batteries.
According to this agreement, Gotion High-tech will export LEP batteries through the battery production base in mainland China to meet the cutomers’ demand. In addition, the two parties also agreed and planned to produce and offer LFP battery in the United States and explored the possibility of establishing a joint venture company. The agreement also mentioned that the customer will support the construction costs, equipment purchase costs and other expenses of US Gotion to establish a power battery factory in the United States through a phased advance payment method. The advance payment will be used for deductions or building joint-venture plants in the future.
At the same time, based on the supply agreement between the two parties, the auto company is expected to purchase batteries with a total amount of no less than 200Gwh from US Gotion from 2023 to 2028.
However, the announcement mentioned that it is a large-scale listed automobile company in the United States and tops among the global automakers by market value . It has sound performance capabilities. At the same time, the company did not make a transaction with Gotion in 2018-2020. Taking into account that the company ourchases LFP batteries, and among the top ten auto companies in the world by market value, only Tesla, GM, and Ford meet the above conditions.
For this transaction, Gotion High-tech stated that the big order indicates the customer’s recognition of the company’s R&D, management and process, and if the agreement is fully fulfilled, it will boost the company’s future operations in the relevant year, accelerate its internationalisation process, and consolidate its position in the industry, which is in line with the company’s long-term development strategy and shareholders’ interests.