{"id":17667,"date":"2020-05-30T15:06:00","date_gmt":"2020-05-30T15:06:00","guid":{"rendered":"https:\/\/icrowdnewswire.com\/?p=2575362"},"modified":"2020-05-30T15:06:00","modified_gmt":"2020-05-30T15:06:00","slug":"volkswagen-doubles-down-on-ev-push-in-china-with-checks-worth-2-3-billion","status":"publish","type":"post","link":"https:\/\/ipsnews.net\/business\/2020\/05\/30\/volkswagen-doubles-down-on-ev-push-in-china-with-checks-worth-2-3-billion\/","title":{"rendered":"Volkswagen doubles down on EV push in China with checks worth $2.3 billion"},"content":{"rendered":"<p>Shares in Chinese automaker JAC Motors and battery supplier Gotion High-tech surged around 10% on Friday, after Volkswagen announced to invest a combined &euro;2.1 billion ($2.3 billion) in the two electric vehicle partners.<\/p>\n<p><strong>Why it matters:<\/strong>&nbsp;The $2.3 billion funding boost from the world&rsquo;s largest automaker could exert great influence in reshaping&nbsp;<a href=\"https:\/\/technode.com\/2020\/04\/10\/tesla-and-nio-buck-ev-sales-slump\/\">the Chinese EV market<\/a>&nbsp;and also help the flagging market recover from weak demand after the Covid-19 outbreak.<\/p>\n<p><strong>Details:<\/strong>&nbsp;Volkswagen on Friday announced it will spend $1.2 billion on a 26.47% stake in Gotion, becoming the first foreign-owned automaker directly investing in a Chinese battery maker. Gotion shares closed up by 10% to RMB 29.9 ($4.18) on the Shenzhen Stock Exchange.<\/p>\n<ul>\n<li>The two parties expect to close the deal by the end of this year, when Volkswagen will be the biggest shareholder of the battery supplier.<\/li>\n<li>Founder and president Li Zhen will maintain control over the company over the next three years. VW will keep its voting right at least 5% less than founding shareholders for a minimum of 36 months, Gotion said&nbsp;<a href=\"http:\/\/www.szse.cn\/disclosure\/listed\/bulletinDetail\/index.html?0b5de401-189c-4436-8017-52b567f88fc4\">in a regulatory filing<\/a>&nbsp;(in Chinese).<\/li>\n<li>Mainly producing&nbsp;lithium iron phosphate batteries,&nbsp;<a href=\"http:\/\/www.szse.cn\/disclosure\/listed\/bulletinDetail\/index.html?0b5de401-189c-4436-8017-52b567f88fc4\">safer but in lower energy density<\/a>&nbsp;than NCA ones, Gotion will become a certified battery supplier to VW in China, including its locally-made all-electric ID. cars.<\/li>\n<li>The German automaker is stepping up to begin mass producing EVs locally in October with partners SAIC and FAW, aiming to reach a combined production capacity of 600,000 units annually.<\/li>\n<li>However, that is not enough to fully support its annual sales goal of 1.5 million EVs in China by 2025.<\/li>\n<li>VW on Friday confirmed it is planning to increase its stake from 50% to 75% in a joint facility with another partner, JAC Motors. It also intends to acquire 50% shares of the state-owned parent of the EV partner with a total investment of around $1.1 billion by year-end.<\/li>\n<li>The two automakers will jointly make as much as 400,000 EVs over the next 10 years or so, according to a&nbsp;<a href=\"http:\/\/static.sse.com.cn\/disclosure\/listedinfo\/announcement\/c\/2020-05-29\/600418_20200529_5.pdf\">non-binding agreement<\/a>&nbsp;revealed by JAC Motors (in Chinese), which added all the parties hope to &ldquo;reach a definitive agreement&rdquo; for the investment by the end of July.<\/li>\n<li>JAC shares jumped 8.11% to RMB 9.06 on Friday.<\/li>\n<\/ul>\n<p><strong>Context:&nbsp;<\/strong>Both JAC and Gotion are headquartered in Hefei, capital of the eastern Anhui province. JAC is also a manufacturing partner of Chinese EV maker Nio.<\/p>\n<ul>\n<li>Speaking with analysts during the Q1 earnings call on Thursday, Nio CEO William Li said more players will help to improve the regional auto supply chain, adding the &ldquo;win-win cooperation&rdquo; will not affect its&nbsp;<a href=\"https:\/\/technode.com\/2020\/05\/29\/nio-promises-all-time-high-deliveries-and-5-gross-margin-for-q2\/\">existing manufacturing plan with JAC<\/a>.<\/li>\n<\/ul>\n<p class=\"tags\">\n<div><strong>See Campaign: <\/strong><a href=\"https:\/\/technode.com\/2020\/04\/10\/tesla-and-nio-buck-ev-sales-slump\/\" target=\"_blank\">https:\/\/technode.com\/2020\/04\/10\/tesla-and-nio-buck-ev-sales-slump\/<\/a><br \/><b>Contact Information:<\/b><br \/>Jill Shen<\/p>\n<p><b>Tags:<\/b><br \/><a href=\"\"><\/a>, <a href=\"https:\/\/icrowdnewswire.com\/category\/news-category\/wire\/\" rel=\"category tag\">Wire<\/a>, <a href=\"https:\/\/icrowdnewswire.com\/category\/global-regions\/united-states\/\" rel=\"category tag\">United States<\/a>, <a href=\"https:\/\/icrowdnewswire.com\/category\/language\/english\/\" rel=\"category tag\">English<\/a><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"\" alt=\"image\" width=\"400\" height=\"300\" class=\"cwdfimg\" \/><\/div>\n<div>\n<h3>Contact Information:<\/h3>\n<p>Jill Shen\n<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Shares in Chinese automaker JAC Motors and battery supplier Gotion High-tech surged around 10% on Friday, after Volkswagen announced to invest a combined &euro;2.1 billion ($2.3 billion) in the two electric vehicle partners. Why it matters:&nbsp;The $2.3 billion funding boost from the world&rsquo;s largest automaker could exert great influence in reshaping&nbsp;the Chinese EV market&nbsp;and also &hellip; <a href=\"https:\/\/icrowdnewswire.com\/2020\/05\/30\/volkswagen-doubles-down-on-ev-push-in-china-with-checks-worth-2-3-billion\/\">Continue reading <span>Volkswagen doubles down on EV push in China with checks worth $2.3 billion<\/span><\/a> <a href=\"https:\/\/ipsnews.net\/business\/2020\/05\/30\/volkswagen-doubles-down-on-ev-push-in-china-with-checks-worth-2-3-billion\/\" class=\"more-link\">Continue Reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":106,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,22,54],"tags":[],"class_list":["post-17667","post","type-post","status-publish","format-standard","hentry","category-english","category-united-states","category-wire"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Volkswagen doubles down on EV push in China with checks worth $2.3 billion - Business<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"http:\/\/ipsnews.net\/business\/2020\/05\/30\/volkswagen-doubles-down-on-ev-push-in-china-with-checks-worth-2-3-billion\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Volkswagen doubles down on EV push in China with checks worth $2.3 billion - Business\" \/>\n<meta property=\"og:description\" content=\"Shares in Chinese automaker JAC Motors and battery supplier Gotion High-tech surged around 10% on Friday, after Volkswagen announced to invest a combined &euro;2.1 billion ($2.3 billion) in the two electric vehicle partners. Why it matters:&nbsp;The $2.3 billion funding boost from the world&rsquo;s largest automaker could exert great influence in reshaping&nbsp;the Chinese EV market&nbsp;and also &hellip; Continue reading Volkswagen doubles down on EV push in China with checks worth $2.3 billion Continue Reading &rarr;\" \/>\n<meta property=\"og:url\" content=\"http:\/\/ipsnews.net\/business\/2020\/05\/30\/volkswagen-doubles-down-on-ev-push-in-china-with-checks-worth-2-3-billion\/\" \/>\n<meta property=\"og:site_name\" content=\"Business\" \/>\n<meta property=\"article:published_time\" content=\"2020-05-30T15:06:00+00:00\" \/>\n<meta name=\"author\" content=\"Waqas Awan\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Waqas Awan\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"http:\/\/ipsnews.net\/business\/2020\/05\/30\/volkswagen-doubles-down-on-ev-push-in-china-with-checks-worth-2-3-billion\/\",\"url\":\"http:\/\/ipsnews.net\/business\/2020\/05\/30\/volkswagen-doubles-down-on-ev-push-in-china-with-checks-worth-2-3-billion\/\",\"name\":\"Volkswagen doubles down on EV push in China with checks worth $2.3 billion - Business\",\"isPartOf\":{\"@id\":\"https:\/\/ipsnews.net\/business\/#website\"},\"datePublished\":\"2020-05-30T15:06:00+00:00\",\"author\":{\"@id\":\"https:\/\/ipsnews.net\/business\/#\/schema\/person\/46e7a3c31ebaa3d111acaa0daf39976f\"},\"breadcrumb\":{\"@id\":\"http:\/\/ipsnews.net\/business\/2020\/05\/30\/volkswagen-doubles-down-on-ev-push-in-china-with-checks-worth-2-3-billion\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"http:\/\/ipsnews.net\/business\/2020\/05\/30\/volkswagen-doubles-down-on-ev-push-in-china-with-checks-worth-2-3-billion\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"http:\/\/ipsnews.net\/business\/2020\/05\/30\/volkswagen-doubles-down-on-ev-push-in-china-with-checks-worth-2-3-billion\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ipsnews.net\/business\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Volkswagen doubles down on EV push in China with checks worth $2.3 billion\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ipsnews.net\/business\/#website\",\"url\":\"https:\/\/ipsnews.net\/business\/\",\"name\":\"Business\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ipsnews.net\/business\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/ipsnews.net\/business\/#\/schema\/person\/46e7a3c31ebaa3d111acaa0daf39976f\",\"name\":\"Waqas Awan\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ipsnews.net\/business\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/3453ff882f8bf8f7e605d09dc0750c5759cb895a2d09c18a38d07b424e7f6a29?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/3453ff882f8bf8f7e605d09dc0750c5759cb895a2d09c18a38d07b424e7f6a29?s=96&d=mm&r=g\",\"caption\":\"Waqas Awan\"},\"sameAs\":[\"https:\/\/icrowdnewswire.com\/fc\"],\"url\":\"https:\/\/ipsnews.net\/business\/author\/waqas-awan\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Volkswagen doubles down on EV push in China with checks worth $2.3 billion - Business","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"http:\/\/ipsnews.net\/business\/2020\/05\/30\/volkswagen-doubles-down-on-ev-push-in-china-with-checks-worth-2-3-billion\/","og_locale":"en_US","og_type":"article","og_title":"Volkswagen doubles down on EV push in China with checks worth $2.3 billion - Business","og_description":"Shares in Chinese automaker JAC Motors and battery supplier Gotion High-tech surged around 10% on Friday, after Volkswagen announced to invest a combined &euro;2.1 billion ($2.3 billion) in the two electric vehicle partners. Why it matters:&nbsp;The $2.3 billion funding boost from the world&rsquo;s largest automaker could exert great influence in reshaping&nbsp;the Chinese EV market&nbsp;and also &hellip; Continue reading Volkswagen doubles down on EV push in China with checks worth $2.3 billion Continue Reading &rarr;","og_url":"http:\/\/ipsnews.net\/business\/2020\/05\/30\/volkswagen-doubles-down-on-ev-push-in-china-with-checks-worth-2-3-billion\/","og_site_name":"Business","article_published_time":"2020-05-30T15:06:00+00:00","author":"Waqas Awan","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Waqas Awan","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"http:\/\/ipsnews.net\/business\/2020\/05\/30\/volkswagen-doubles-down-on-ev-push-in-china-with-checks-worth-2-3-billion\/","url":"http:\/\/ipsnews.net\/business\/2020\/05\/30\/volkswagen-doubles-down-on-ev-push-in-china-with-checks-worth-2-3-billion\/","name":"Volkswagen doubles down on EV push in China with checks worth $2.3 billion - Business","isPartOf":{"@id":"https:\/\/ipsnews.net\/business\/#website"},"datePublished":"2020-05-30T15:06:00+00:00","author":{"@id":"https:\/\/ipsnews.net\/business\/#\/schema\/person\/46e7a3c31ebaa3d111acaa0daf39976f"},"breadcrumb":{"@id":"http:\/\/ipsnews.net\/business\/2020\/05\/30\/volkswagen-doubles-down-on-ev-push-in-china-with-checks-worth-2-3-billion\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["http:\/\/ipsnews.net\/business\/2020\/05\/30\/volkswagen-doubles-down-on-ev-push-in-china-with-checks-worth-2-3-billion\/"]}]},{"@type":"BreadcrumbList","@id":"http:\/\/ipsnews.net\/business\/2020\/05\/30\/volkswagen-doubles-down-on-ev-push-in-china-with-checks-worth-2-3-billion\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ipsnews.net\/business\/"},{"@type":"ListItem","position":2,"name":"Volkswagen doubles down on EV push in China with checks worth $2.3 billion"}]},{"@type":"WebSite","@id":"https:\/\/ipsnews.net\/business\/#website","url":"https:\/\/ipsnews.net\/business\/","name":"Business","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ipsnews.net\/business\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/ipsnews.net\/business\/#\/schema\/person\/46e7a3c31ebaa3d111acaa0daf39976f","name":"Waqas Awan","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ipsnews.net\/business\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/3453ff882f8bf8f7e605d09dc0750c5759cb895a2d09c18a38d07b424e7f6a29?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/3453ff882f8bf8f7e605d09dc0750c5759cb895a2d09c18a38d07b424e7f6a29?s=96&d=mm&r=g","caption":"Waqas Awan"},"sameAs":["https:\/\/icrowdnewswire.com\/fc"],"url":"https:\/\/ipsnews.net\/business\/author\/waqas-awan\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ipsnews.net\/business\/wp-json\/wp\/v2\/posts\/17667","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ipsnews.net\/business\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ipsnews.net\/business\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ipsnews.net\/business\/wp-json\/wp\/v2\/users\/106"}],"replies":[{"embeddable":true,"href":"https:\/\/ipsnews.net\/business\/wp-json\/wp\/v2\/comments?post=17667"}],"version-history":[{"count":1,"href":"https:\/\/ipsnews.net\/business\/wp-json\/wp\/v2\/posts\/17667\/revisions"}],"predecessor-version":[{"id":17668,"href":"https:\/\/ipsnews.net\/business\/wp-json\/wp\/v2\/posts\/17667\/revisions\/17668"}],"wp:attachment":[{"href":"https:\/\/ipsnews.net\/business\/wp-json\/wp\/v2\/media?parent=17667"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ipsnews.net\/business\/wp-json\/wp\/v2\/categories?post=17667"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ipsnews.net\/business\/wp-json\/wp\/v2\/tags?post=17667"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}