Geely Auto Group in partnership with LG Chem

Chinese carmaker Geely Auto Group announced a deal on Thursday to partner with South Korean battery maker LG Chem to power its drive into the fast-growing new energy vehicle segment.

Shanghai Maple Guorun, a subsidiary of Geely, will form a 50-50 joint venture with LG Chem in China with a registered capital of $188 million to manufacture and sell batteries for new energy vehicles, said the carmaker in a statement.

Construction of the joint venture will kick off later this year. When completed by the end of 2021, it is expected to have an annual production capacity of 10 GWh, and the batteries would be installed on Geely's vehicles from 2022, said Reuters citing LG Chem.