Swedish car makers NEVS AB and Koenigsegg AB are forming a strategic partnership, enabling the development of parallel vehicle models in slightly higher volumes with emphasis on electrification, as well as strengthening growth opportunities in the hypercar segment.

NEVS is investing €150 million, thereby taking a 20% minority stake in Koenigsegg’s parent company. Additionally, the parties are forming a joint venture to expand into new market segments where NEVS AB is contributing US$150 million in starting capital for a 65% stake and Koenigsegg obtains 35% by contributing primarily with intellectual property, technology licenses, and product design.

The two companies say the partnership will deepen an already existing collaboration between NEVS and Koenigsegg, creating synergies between their geographical footprints, experiences and competencies. Koenigsegg already has a distinguished unique market position for hypercars, and through the additional joint venture NEVS and Koenigsegg are partnering up to develop a product for new and untapped segments, leveraging both of the companies’ strengths.

Through NEVS production facilities in Trollhättan, Koenigsegg will access additional capabilities as well as benefiting from the extensive automotive knowledge in the region, while maintaining its center of excellence in Ängelholm.

Alongside NEVS capacity for production in Trollhättan and China, NEVS through its majority owner Evergrande, has a wide distribution platform and channels through ownership in one of China’s largest car retailers. Last week, Evergrande announced the acquisition of 58.07% in automobile battery maker Shanghai CENAT New Energy Co Ltd, a $156~million deal.