The Saft subsidiary of French energy group Total has reached a new agreement to expand its business in China in the fast-growing battery, energy storage and electric vehicle market.
Total said on Thursday that Saft has signed an agreement with energy technology company Tianyi to set up a joint venture to expand their lithium-ion activity.
The companies did not disclose the value of the deal.
The production base will be located in Changxing Geely factory with a potential capacity of 5.
5 Giwa hours (GWh)
, Part of it is already running.
Total's Saft division will hold 40% of the shares in the new joint venture, while the day will hold the remaining shares.
The companies said they planned to expand Changxing plant and improve its production capacity to meet the growing demand in the future, driven primarily by e-commerce
The development of mobile sales and renewable power generation capabilities.
As European manufacturers compete to catch up with Asian rivals in the fast-growing market, the deal has brought Saft and Total into the Chinese battery market. Saft, a 100-
A French company focused on industrial batteries, founded for a year, is leading a European consortium that includes Siemens, Salvi, Mantz, Umicore and Eramet who want
"The joint venture will allow Saft to work with China Partners, the world's leading lead-acid battery manufacturer, to be willing to develop its lithium-
Chief executive of Total (CEO)
Patrick Pouyanne said in a statement.
"It will also allow Saft to enter China's booming battery market and have a highly competitive mass production capacity to accelerate its growth," he added . ".
The deal will allow the company to change its size and significantly increase its footprint in China, said Saft CEO Ghislain Lescuyer
By 2025, the ion battery market will account for more than 40% of global demand.