China Internet company The9 signs JV agreement with Faraday for EVs in China; kicking in up to $600M
China-based The9 Limited, an established Internet company, signed a joint venture agreement with Faraday&Future Inc. to establish a joint venture to manufacture, market, distribute, and sell electric cars in China.
The JV’s immediate objective is exclusively to manufacture, market, distribute, and sell the Faraday Future’s new brand V9 model, a flagship luxury IAIEV based on the technology and design concepts of the FF 91, FF’s flagship consumer car model, and other potential selected car models in China.
Under the terms of the JV agreement, The9 will make a capital contribution of up to US$600 million in three equal installments to the JV, and FF will make contributions including its use right in a piece of land in China for electric cars manufacturing and will grant the JV an exclusive license to manufacture, market, distribute and sell Faraday Future’s new brand V9 model and other potential car models in China, in each case subject to the satisfaction of certain conditions.
The9 and FF will each have 50% ownership of the JV, while The9 will control the business operations of the JV.
FF, the JV and The9 will negotiate and enter into a license agreement pursuant to which FF will grant to the JV an exclusive license to manufacture, market, distribute and sell Faraday Future’s new brand V9 model and other potential selected car models in China.
As a California-based ultra-luxury intelligent mobility brand, FF has hundreds of proprietary patents, along with more than 2,000 industry patents in process to be approved, in both China and the United States. We are committed to be part of the future of the Chinese EV mobility market. Through the establishment of the joint venture, we are able to implement our dual-home-market and dual-brand strategy and achieve our strategic goal of introducing our luxury EV brand in China. This is only the beginning of a series of strategic actions for FF, all designed to support the completion and launch of its “new species” FF 91 EV in 2019, continue development of the mass-market premium model FF 81 in both China and the United States.—FF founder and CEO YT Jia