Though often falling below the radar map, China's Chery Automobile Co. has developed numerous electric vehicles (EVs) and has shown an interest in producing many more of them in the coming years. The company's work on EVs such as the Riich M1, to the S18, its Tiggo 3 and even the QQ, shows us that Chery's fondness for battery-powered vehicles continues to grow. Now, Chery Automobile has awarded China BAK Battery Inc. a contract to supply 110 lithium-ion batteries, which will be used by Chery to manufacture electric cars this year.
Chery's initial battery contract with China BAK may appear to be minor, but the deal is considered a repeat order, meaning that there's potential for both parties to continue the contract, which could lead to a high-volume production and supply agreement.
Xiangqian Li, chief executive officer of China BAK, commented on the significance of the deal:
With China's automotive population predicted to reach 200 million by 2020 and the potential for serious environmental issues associated with this growth, EVs could offer relief to a nation searching for solutions to a growing pollution problem. Hit the jump to read more about China's BAK's contract with Chery Automobile. Hat tip to Jakob!We are excited to have the opportunity to work with Chery to deliver world-class electric cars. Our cooperation with Chery is a new milestone in our expansion into the high-technology electric vehicles segment. It demonstrates the high quality of our products and the strong commitment of our team. With the continual government support and policies, we believe electric vehicles have significant growth potential in China and we are well-positioned to optimally harness this opportunity.
[Source: China BAK Battery, Inc.]
China BAK Awarded a New Contract to Supply High-Power Batteries to Chery Automobile
SHENZHEN, China, Sept 010, 2010 /PRNewswire via COMTEX/ -- China BAK Battery, Inc., a leading global manufacturer of lithium-based battery cells, today announced that the Company's Tianjin facility was awarded a new contract by Chery Automobile Co., Ltd. ("Chery"), one of the largest automobile manufacturers in China, to supply high-power batteries used in manufacturing electric cars.
As per the contract, China BAK will supply 110 units of lithium-ion power batteries, which will be used by Chery to manufacture electric cars in its December quarter. China BAK will deliver these batteries to Chery in December 2010. This is a repeat order and there is a potential that it will lead to a large scale supply contract.
"We are excited to have the opportunity to work with Chery to deliver world-class electric cars. Our cooperation with Chery is a new milestone in our expansion into the high-technology electric vehicles segment. It demonstrates the high quality of our products and the strong commitment of our team," commented Mr. Xiangqian Li, CEO of China BAK, "With the continual government support and policies, we believe electric vehicles have significant growth potential in China and we are well-positioned to optimally harness this opportunity."
About Chery Automobile Company, Ltd.
Chery Automobile Co., Ltd. manufactures, markets, and exports passenger vehicles in China. It offers cars, SUVs and MPVs, and SPVs. It also provides engines, transmissions, and other components. Chery Automobile Co., Ltd. was formerly known as Anhui Chery Automobile Co., Ltd. The company was founded in 1997 and is headquartered in Wuhu, China with operations in Asia, the Middle East, Africa, North America, South America, and Australia. At present, Chery possesses a full set of production and R&D units, such as Car Factories, Engine Factories, Transmission Factory, Automotive Engineering and Research Institute, Planning & Design Institute and Testing Technology Center. For more information, please visit http://www.cheryinternational.com .
About China BAK Battery Inc.
China BAK Battery, Inc. /quotes/comstock/15*!cbak/quotes/nls/cbak (CBAK 1.81, +0.15, +9.04%) is a leading global manufacturer of lithium-based battery cells. The Company produces battery cells that are the principal component of rechargeable batteries commonly used in cellular phones, notebook computers and portable consumer electronics such as digital media devices, portable media players, portable audio players, portable gaming devices, and PDAs. China BAK Battery, Inc.'s production facilities, located in Shenzhen and Tianjin, PRC, cover over three million square feet and have been recently expanded to support the production of larger batteries for various types of vehicles. For more information regarding China BAK Battery, Inc., please visit http://www.bak.com.cn .
Safe Harbor Statement
This press release contains forward-looking statements, which are subject to change. The forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All "forward-looking statements" relating to the business of China BAK Battery, Inc. and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties which could cause actual results to differ. These factors include but are not limited to: risks related to China BAK's business and risks related to operating in China. Please refer to China BAK's Annual Report on Form 10-K for the fiscal year ended September 30, 2009, as well as China BAK's Quarterly Reports on Form 10- Q that have been filed since the date of such annual report, for specific details on risk factors. Given these risks and uncertainties, you are cautioned not to place undue reliance on forward-looking statements. China BAK's actual results could differ materially from those contained in the forward-looking statements. China BAK undertakes no obligation to revise or update its forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.