Kandi Vehicles signs LOI with China Aviation Lithium Battery Co., Ltd. to promote 20,000 EVs in Hangzhou
Kandi Technologies Corp., a China-based manufacturer and developer of battery electric vehicles (EVs) and all-terrain vehicles (ATVs), announced that its wholly owned subsidiary, Zhejiang Kandi Vehicles Co., Ltd. signed a cooperative letter of intent (LOI) with China Aviation Lithium Battery Co., Ltd. (CALB), a subsidiary of Aviation Industry Corporation of China (AVIC) to promote 20,000 pure electrical vehicles in Hangzhou.
The LOI signed by Kandi and CALB is to facilitate faster development of China’s electric vehicle industry and to secure Kandi and AVIC’s positions in the EV and lithium battery industries. Their cooperation is also intended to promote structural development of China’s automobile industry and accelerate transformation of economic growth pattern to fulfill the national goal of sustainable development.
The State Grid Cooperation of China (State Grid) will cooperate with AVIC through CALB for a 20,000 pure EV project through a personal leasing method in Hangzhou, Zhejiang. Under the project, AVIC/CALB will be responsible to produce automobile-use lithium batteries and purchase 20,000 electric vehicles for personal leasing, while the State Grid will be responsible for the construction and supply of the charging network to power the operation of 20,000 EVs as well as the procurement of integrated automobile-use power battery sets.
The Hangzhou municipal government will provide financial subsidies and create supporting policies that are beneficial for the promotion of EVs.
According to the letter of intent, the project is expected to launch in this August, and is anticipated to be completed by the end of 2013. Under the LOI, Kandi will make certain undertakings, including the supply of the EVs at a rate that would allow accomplishing the completion of the project by the end of 2013. If the cooperation and business model of this project are successful, it may be expanded nation-wide.