Recently, JunHe assisted Volkswagen AG in establishing Enover (Suzhou) New Energy Technology Co., Ltd. as a joint venture (the “JV”) with Shanghai Du-power New Energy Technology Co., Ltd. in Suzhou Wuzhong Economic and Technological Development Zone by acting through its investment vehicle Volkswagen (China) Investment Co., Ltd. (this “Project”). The JV was duly established on April 7, 2020 with the registered capital of RMB 300 million. Each of the Parties hold 50% equity interest in the JV respectively. The JV is mainly engaged in the design, research and development and production of new energy vehicle charging piles. This Project was closed on May 28, 2020.
JunHe participated through the entire Project as the legal counsel of Volkswagen AG in China. We assisted Volkswagen AG in drafting, negotiating and finalizing transaction documents, including the shareholders agreement, the license agreement and the technology transfer agreement, and also assisted Volkswagen AG in establishing the JV and closing this Project.
The construction of charging infrastructures for new energy vehicles is one of the key areas of the national "New Infrastructure" program that are strongly supported in terms of both market and policies. This Project involves the production of new energy vehicle charging piles, which is an upstream part of charging infrastructure construction. The fast charging piles produced by the JV are more flexible, more efficient and less noisy than traditional charging piles, therefore it has a broad market prospect. Volkswagen AG is turning to production of electronic vehicles in recent years. As the local production of new energy vehicles in China is increased, Volkswagen AG plans to deliver 1.5 million new energy vehicles to Chinese consumers by 2025. The JV started the research and development of flexible energy-storage fast charging piles immediately upon its establishment and will start mass production in the second half of this year, so as to further improve the supply chain of supporting facilities for Volkswagen AG’s new energy vehicles. So far, Volkswagen AG has established a perfect framework for the new energy vehicle industry chain in the fields of new energy vehicle plants, new energy batteries and new energy vehicle charging piles in China.
As new energy vehicle has an increasingly stronger presence and become the main direction of development in vehicle industry in recent years in China, JunHe has helped clients to widely expand in the field of new energy vehicles from the upstream production of new energy batteries and ancillary facilities to the downstream investment in and establishment of new energy vehicle plants and vehicle sales companies. JunHe expects to continue to work with clients thoroughly in the field of new energy vehicles and help clients with our rich experience to achieve significant development in this field.
The lead partner of this Project is HUA, Xiaojun (Warren) .