Geely Automobile Holdings Limited published an announcement, stating that the company will set up a joint venture with LG Chem for the production and sales of electric car batteries.

Geely Automobile said that Geely's indirect subsidiary Shanghai Maple Guorun signed a joint venture agreement with LG Chem on June 12, 2019. Based on the agreement, the two parties will establish a joint venture to make and sell electric car batteries. The joint venture will have registered capital of USD188 million and Shanghai Maple Guorun and LG Chem will each own a 50% stake.

The initial operation period of the joint venture is 20 years and it can be further extended with the consent of the two parties. The board of directors of the joint venture will have five members, including two nominated by Shanghai Maple Guorun and three nominated by LG Chem.

LG Chem is the largest chemical company in South Korea and it is mainly engaged in the R&D, manufacturing and sales of electric car batteries.