As per the terms of the LOI, the two companies will jointly produce lithium-iron phosphate for EV batteries through an investment of $14.7m.
The companies have an initial target of producing 2,000 metric tons of lithium-iron phosphate a year for the purpose, according to Bloomberg.
The companies will also form a joint venture business for manufacturing lithium batteries for EVs and have agreed to jointly invest CNY250m on the new company.
Further, Foshan and Pihsiang plan to manufacture EVs with an initial target of producing 20 units in 2010.
Foshan will hold the majority interest in all these EV projects with at least 51% stake in each of the joint ventures with Pihsiang.
