China Wanxiang is planning to form a joint venture between its wholly-owned subsidiary, Puxing Energy, and NEC aimed to focus on grid energy storage opportunities in the Chinese market.
Expected to commence initial business activities later this year, the joint venture, which will be 51% held by Wanxiang and 49% held by NEC, allows Wanxiang to pursue the Chinese grid storage market following the sale of the A123 Energy Solutions unit.
Puxing Energy Chairman and China Wanxiang Holding Chairman Weiding Lu said Puxing is committed to developing a business and technology foundation in order to meet the growing demand of the Chinese market in partnership with NEC.
"NEC and the former A123 Energy Solutions Group have developed leading technology and successfully executed advanced project solutions in the energy storage field worldwide," Weiding Lu said.
"We see tremendous business opportunities in the accelerated transformation of China's development model and its closely related energy structure, a key driver for the changing market landscape throughout the value chain of China's power sector."
The joint venture will initially focus on market development of the best applications for its technology.
In recent months, A123 Energy commissioned two installations of its Grid Storage Solution (GSS) product line in China.