The JV company will initially assemble, then fully manufacture intelligent, renewable energy power systems for sale on an exclusive basis in mainland China and on a non-exclusive basis in Hong Kong and Taiwan.
ZBB Energy will provide products and technology to the JV company, that will build a new manufacturing center in WuHu City, Anhui Province that will begin operations in early 2012.
The JV firm will have an exclusive, royalty-free license to develop and sell ZBB’s V3 battery (50kW) and PECC (about 250kW) in Mainland China and a non-exclusive royalty-free license to manufacture and distribute the products in Hong Kong and Taiwan in the power management industry.
The JV partners include, ZBB-PowerSav, AnHui XinLong Electrical and WuHu Huarui Power Transmission & Transformation Engineering.
ZBB-PowerSav, which is formed by ZBB and PowerSav, will provide certain management services to the JV company in exchange for a management services fee equal to five percent of net sales for the first five years and three percent of net sales for the subsequent three years.
The JV will be established upon governmental approvals from China, anticipated to be received in November 2011.
