In July 2018, Contemporary Amperex Technology Co., Limited ("CATL") announced the execution of a Strategic Cooperation Agreement with BMW Brilliance Automotive Limited ("BBA"). According to the agreement, CATL will provide cells for the next generation battery of BBA's electronic vehicles, and BBA will pay advance payment of RMB 2,852,500,000. At the meantime, CATL will transfer a battery production capacity construction project located in Ningde, Fujian to BBA for a price of RMB 815,000,000, which will be used to manufacture cells for electric vehicle of BBA. In addition, in the event that CATL carries out any domestic private placement or H-share IPO, BBA will have to right to participate, in which case the cap on the investment will be RMB 2,852,500,000.
CATL is founded in 2011, and now has become a leading global power battery system provider. Its turnover in 2017 reached approximately RMB 20 billion, and according to GGII statistics, CATL has become the world no.1 in terms of sales volume of power battery systems in 2017.
The cooperation will enable CATL to benefit from Industry 4.0 manufacturing and the constant innovation in electric transportation by BBA, and therefore further strengthen CATL's leading position in the power battery sector. Meanwhile, BBA will find a long term sustainable solution for its increasing demand on battery cells. Through the ongoing cooperation, the two companies will establish a win-win partnership in the key technology sector in China.
As counsel for CATL, Llinks participated in drafting and negotiation of transaction documents.
