CALB and Leapmotor Form Joint Venture with $139 Million Investment

Zhongling New Energy is jointly funded by CALB (03931.HK) and Leapmotor (09863.HK), holding 51% and 49% of the shares, respectively.

According to Chinese corporate registry platform Qichacha, Zhongling New Energy Technology (Zhejiang) Co., Ltd. has been officially established with a registered capital of RMB 1 billion ($139 million).

The new joint venture is owned by CALB (China Aviation Lithium Battery, 03931.HK) and Leapmotor (09863.HK), holding 49% and 51% of the shares respectively.

The scope of Zhongling New Energy’s business includes battery manufacturing and sales, recycling and secondary utilization of retired NEV power batteries, as well as sales of battery-swapping facilities and related components.

Plans for this joint venture had been underway for some time. In late July, the Shanghai Administration for Market Regulation disclosed the case filing for “CALB and Leapmotor’s establishment of a joint venture,” which subsequently received unconditional approval from the State Administration for Market Regulation on August 22.

This is not the first collaboration between CALB and Leapmotor. Back in 2021, CALB became the exclusive battery supplier for Leapmotor’s C11 model. With the formation of this joint venture, the two companies are moving from a single supply-chain relationship to a deeper strategic partnership.

As the largest shareholder of the new company, CALB is expected to leverage Zhongling New Energy as a vehicle to invest in and construct new battery production facilities.

Leapmotor has been actively strengthening its capital reserves and supply chain integration in recent years. In 2022, it went public in Hong Kong, becoming the fourth emerging EV maker to list after NIO, XPeng, and Li Auto.

It later brought in Stellantis as a strategic investor, established “Leapmotor International” to expand overseas, and signed a cooperation agreement with FAW Group.

According to Leapmotor’s interim results released on August 18, the company generated revenue of RMB 24.25 billion ($3.38 billion) in the first half of 2025, a year-on-year increase of 174%.

Vehicle deliveries reached 221,600 units, up 155.7%, with the company achieving positive net profit for the first time in a half-year reporting period. Full-year net profit is projected between RMB 500 million ($69.6 million) and RMB 1 billion ($139 million).

CALB, the first power battery manufacturer listed on the Hong Kong Stock Exchange, installed 24.15 GWh of batteries in China between January and July this year, ranking third domestically. Globally, it recorded 21.8 GWh of installations in the first half of the year, ranking fourth with a year-on-year growth of 22.7%.

Beyond partnerships with automakers, CALB also set up a new company in early August in Handan, Hebei Province, with a registered capital of RMB 4 billion ($557 million). The venture, backed by local state-owned enterprises, will likewise focus on the production of power and energy storage batteries.

So far, the location and production capacity plans for Zhongling New Energy’s future factory have not yet been disclosed.