ElringKlinger : and Chengfei Integration Technology conclude framework agreement on joint venture for battery technology

ElringKlinger and Chengfei Integration Technology conclude framework agreement on joint venture for battery technology

- Establishment of a joint venture for the development, production, and distribution of lithium-ion battery modules

- Complementary business operations: Chengfei Integration Technology contributes battery cells and ElringKlinger all other module components to joint venture

- Focus on international e-mobility projects in Asia, Europe, and the US

Dettingen/Erms (Germany), November 27, 2017 +++ ElringKlinger AG has reached an agreement with Sichuan Chengfei Integration Technology Co., Ltd. (CITC), China, outlining the companies' collaboration within the area of battery technology. A framework agreement covering the terms of the joint venture was signed by the partner companies on November 24, 2017. The agreement initially runs for a period of ten years up to December 31, 2027. The framework agreement stipulates the establishment of a joint venture entity for the development, production, and distribution of lithium-ion battery modules for the global automotive market. In this context, the focus is on international e-mobility projects in Asia, Europe, and the United States.

The joint venture brings together complementary operations of the two parties to the contract: while CITC is responsible, via its subsidiary China Aviation Lithium Battery Co., Ltd. (CALB), for the electrochemical constituents of the cell, ElringKlinger will be contributing the remaining components of the module, such as highly innovative cell contact systems and cell housings. Furthermore, ElringKlinger will oversee the areas of battery module design and production. In addition to gaining mutual access to resources, the two joint venture partners will benefit from each other's expertise and the many years of experience amassed by both companies in various sub-disciplines of battery technology. The aim of this collaborative approach in the field of battery technology is to evolve business activities in pursuit of a sustained improvement in market penetration.

Dr. Stefan Wolf, CEO of ElringKlinger AG, commented as follows: "The joint venture framework agreement provides a classic win-win constellation for the two partners. CITC now has at its side a global automotive supplier with expertise in industrialization and sales, while ElringKlinger will in future be working with one of the leading cell producers." "This is another important step forward with regard to our strategic positioning in the area of sustainable mobility," he added.

ElringKlinger has been active in the field of battery technology since as early as 2009 and commenced serial production of various components and cell contact systems for lithium-ion batteries several years ago. Additionally, ElringKlinger develops and manufactures complete battery modules and systems as well as aggregate energy storage units.

CITC is a subsidiary of the state-owned enterprise Aviation Industry Corporation of China. Among other shareholdings, CITC has a stake in CALB, which produces batteries and power supply systems for various applications. As a certified manufacturer of lithium-ion cells and energy storage systems, CALB will contribute the electrochemical constituents of the battery cell to the joint venture.

For further information, please contact:
ElringKlinger AG
Dr. Jens Winter
Investor Relations / Corporate PR
Max-Eyth-Straße 2
D-72581 Dettingen/Erms
Phone: +49 7123 724-88335
Fax: +49 7123 724-85 8335
E-mail: jens.winter@elringklinger.com

About ElringKlinger AG
As an automotive supplier, ElringKlinger has become a trusted partner to vehicle manufacturers - with a firm commitment to shaping the future of mobility. Whether optimized combustion engines, high-performance hybrids, or environmentally-friendly battery and fuel cell technology, ElringKlinger provides innovative solutions for all types of drive system. ElringKlinger's lightweighting concepts help to reduce the overall weight of vehicles. As a result, vehicles powered by combustion engines consume less fuel and emit less CO₂, while those equipped with alternative propulsion systems benefit from an extended range. In response to increasingly complex combustion engine technology, the Group also continues to refine and evolve its offering within the area of seals and gaskets in order to meet the highest possible standards. This is complemented by thermal and acoustic shielding technology as well as particulate filters and end-to-end exhaust gas purification systems for engines used in stationary and mobile applications. Additionally, the Group's portfolio includes products made of the high-performance plastic PTFE, which is also marketed to industries beyond the automotive sector. These efforts are supported by a dedicated workforce of more than 9,300 people at 49 ElringKlinger Group locations around the globe.