20,000 Electric Vehicles Project For Zhejiang Kandi in China

On July 10, Zhejiang Kandi Vehicles Co., Ltd. signed a letter of intent (LOI) with China Aviation Lithium Battery Co., Ltd. (CALB) at the Cooperation Forum in Beijing to collaboratively promote 20,000 pure electrical vehicles in Hangzhou, Zhejiang.

Zhejiang Kandi Vehicles Co., Ltd. is a wholly owned subsidiary of Kandi Technologies Corp. (Kandi) and CALB is a subsidiary of Aviation Industry Corporation of China (AVIC).

According to Kandi, the LOI is to facilitate faster development of China’s electric vehicle industry and to secure Kandi and AVIC’s leading positions in the EV and lithium battery industries.

Their cooperation is also intended to promote structural development of China’s automobile industry and accelerate transformation of economic growth patterns to fulfill the national goal of sustainable development.

The State Grid Cooperation of China (State Grid) will cooperate with AVIC through CALB for a 20,000 units pure EV project through personal leasing method in Hangzhou, Zhejiang.

Under the project, AVIC/CALB will be responsible to produce automobile-use lithium batteries and purchase 20,000 electric vehicles for personal leasing, while the State Grid will be responsible for the construction and supply of the charging network to power the operation of 20,000 EVs as well as the procurement of integrated automobile-use power battery sets.

The Hangzhou municipal government will provide financial subsidies and create supporting policies that are beneficial for the promotion of EVs.

Hangzhou Zhejiang China

Hangzhou, Zhejiang.

This leasing project, led by the state and local governments’ supporting policies, will fully explore the technology and size advantages of cooperating companies, work closely with the State Grid’s smart charging/powering network strategic plan.

Kandi hopes it will become the first successful story of the EV operation on a large scale, which the company anticipates will bring deep impact to the new energy industry of China and the world.

According to the letter of intent, the project is expected to launch this August, and is anticipated to be completed by the end of 2013. Under the LOI, the company has made certain undertakings, including the supply of the EVs at a rate that would allow accomplishing the completion of the project by the end of 2013.

The cooperation and business model of this project may be expanded nation-wide if successful.


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