Kandi Technologies Corp. (the "Company" or "Kandi"), a leading Chinese manufacturer and developer of pure electric vehicles (EVs) and all-terrain vehicles (ATVs), announced that the Company’s wholly owned subsidiary, Zhejiang Kandi Vehicles Co., Ltd. signed a cooperative letter of intent ("LOI") with China Aviation Lithium Battery Co., Ltd. ("CALB"), a subsidiary of Aviation Industry Corporation of China ("AVIC") at the Cooperation Forum in Beijing on July 10th, 2012 to promote 20,000 pure electrical vehicles in Hangzhou.
There were over ten Strategic Cooperation LOIs signed between the companies from Jinhua city and major State Owned Enterprises of China at the Cooperation Forum in Beijing. The LOI signed by Kandi and CALB is to facilitate faster development of China’s electric vehicle industry and to secure Kandi and AVIC’s leading positions in the EV and lithium battery industries. Their cooperation is also intended to promote structural development of China’s automobile industry and accelerate transformation of economic growth pattern to fulfill the national goal of sustainable development. The State Grid Cooperation of China ("State Grid") will cooperate with AVIC through CALB for a 20,000 pure EV project through personal leasing method in Hangzhou, Zhejiang. Under the project, AVIC/CALB will be responsible to produce automobile-use lithium batteries and purchase 20,000 electric vehicles for personal leasing, while the State Grid will be responsible for the construction and supply of the charging network to power the operation of 20,000 EVs as well as the procurement of integrated automobile-use power battery sets. The Hangzhou municipal government will provide financial subsidies and create supporting policies that are beneficial for the promotion of EVs.
This leasing project is led by the state and local governments’ supporting policies, will fully explore the technology and size advantages of cooperating companies, work closely with the State Grid’s smart charging/powering network strategic plan, and it will become the first successful story of the EV operation in a large scale, which the Company anticipates will bring deep impact to the new energy industry of China and the world.
According to the letter of intent, the -project is expected to launch in this August, and is anticipated to be completed by the end of 2013. Under the LOI, the Company has made certain undertakings, including the supply of the EVs at a rate that would allow accomplishing the completion of the project by the end of 2013. If the cooperation and business model of this project are successful, it may be expanded nation-wide.
Kandi Technologies, Corp. KNDI is a manufacturer and exporter of a variety of vehicles in China, making it a world leader in the production of popular off-road vehicles (ORVs). It also ranks among the leading manufacturers in China of all-terrain vehicles (ATVs), specialized utility vehicles (UTVs), and a recently introduced second-generation high mileage, two-seat three-wheeled motorcycle. Another major company focus has been on the manufacture and sale of the COCO electric vehicle (EV), a highly economical, beautifully designed, all-electric super mini-car for neighborhood driving and commuting. The convertible and hardtop models of the COCO EV are available in the United States and other countries, while the Chinese government has approved the sale of Kandi EVs in China since 2010.