Chinese leading automaker Dongfeng Motor has announced construction of the Sunwoda-Dongfeng power battery production base project has started on Sunday in Yichang High-tech Zone, Hubei Province. 

The project is developed under a joint venture between Dongfeng Group, Sunwoda Electric Vehicle Battery and Dongfeng Hongtai Holding Group. With an estimated investment CNY 12 billion ($1.65 billion), the companies plan to construct 30 gigawatt-hours of production capacity for power batteries. The two-phase development will start with initial capacity of 20 GWh, Kallanish learns. 

In June, the parties signed an agreement to improve the JV's cell technology competitiveness and the ability to guarantee the supply of battery resources. In order to satisfy the demand for vehicle-use battery products of their own and the related parties, they will jointly research, develop and produce cells, components and related parts for power and energy storage batteries for new energy vehicles. 

According to their agreement, the JV has a registered capital of CNY 500 million. Dongfeng Group, Dongfeng Hongtai Holding Group, and Sunwoda Electric Vehicle Battery hold 35%, 14% and 51% of the shares in this JV, respectively.