FAW Jiefang and CATL have signed a strategic cooperation agreement under which they agreed to work together to develop new energy commercial vehicles.
According to the agreement, the two parties plan to integrate selected resources in the field of new energy commercial vehicles. They will collaborate in product matching, product development, science and technology project applications, industrial ecosystem construction, and business model innovation.
The joint venture between FAW Jiefang and CATL—FAW Jiefang Times New Energy Technology Co., Ltd.—will work to leapfrog growth in the sales of new energy commercial vehicles. Currently, driven by the government’s “dual carbon” strategic goals, the green transformation of the commercial vehicle transportation industry, is imminent and holds significant market potential. Data from the China Association of Automobile Manufacturers shows that from January to November 2024, the sales volume of new energy commercial vehicles in China reached 462,000 units, with a year-on-year increase of as high as 31.1%.
CATL has made early moves in the commercial vehicle sector, launching its first commercial vehicle battery brand—”CATL Tianxing.” This brand covers logistics and public transportation, meeting the performance requirements of buses, light-duty trucks, heavy-duty trucks, and engineering machinery for long-range, fast-charging, and long-life capabilities, and provides full-scenario solutions for the commercial vehicle industry.
CATL plans to leverage its advantages in new energy core technologies and work with FAW Jiefang to accelerate the development and popularization of commercial vehicle battery technologies.
Source: Finance Sina Read The Article
PSR Analysis. Commercial vehicles are major consumers of energy and emitters of carbon, and their electrification is crucial for achieving the government’s “dual carbon” goals. CATL also has established strategic partnerships with major commercial vehicle companies such as Dongfeng, JAC, and SAIC.
This latest agreement with FAW Jiefang focuses on technological collaboration and also extends to business model innovation. For example, it includes services such as battery-swapping, vehicle leasing and transportation services, as well as the recycling of second-hand vehicles and batteries. These services aim to reduce the initial purchase costs for logistics companies and optimize their operating models. By enhancing customer acceptance of new energy commercial vehicles, they will drive sustainable industry development and accelerate the electrification of China’s commercial vehicle sector. CATL’s leading position in battery technology, combined with FAW Jiefang’s extensive experience in commercial vehicle manufacturing, could very well accelerate the development of new energy commercial vehicle technologies. PSR
Jack Hao is Senior Research Manager – China for Power Systems Research
