ECARX Holdings, Inc. Enters Agreement with Geely Auto for Components Procurement and R&D Services
November 18, 2024 – Shanghai
ECARX Holdings, Inc. (Nasdaq: ECX), a global mobility tech provider, has recently announced a significant partnership with Geely Automobile Holdings Limited (HKEX: 0175) for components procurement and R&D services. The agreement, which was signed on November 14, 2024, aims to enhance the driving technology system for new energy vehicles of Geely Auto.
Under the Components Procurement and R&D Services Agreement, Geely Auto will purchase automobile components and R&D services from ECARX, Zhejiang HUANFU Technology Co., Ltd., and Hangzhou Langge Technology Co., Ltd. The agreement is set to last for three years, concluding on December 31, 2027.
Implications of the Agreement
The aggregated annual caps covered by the agreement for the Supplier Group are significant, totaling RMB6,387.281 million, RMB6,430.855 million, and RMB6,489.889 million for 2025, 2026, and 2027 respectively. These expenses are exempt from the approval requirements of independent shareholders of Geely Auto, as per the rules governing the listing of securities on The Stock Exchange of Hong Kong Limited.
The success of this partnership hinges on the fulfilment of various conditions precedent by both parties. Once these conditions are met, the Supplier Group will play a crucial role in enhancing Geely Auto’s new energy vehicle technology, offering innovative solutions to meet the demands of the modern automotive market.
Impact on Individuals
For consumers, this partnership may result in the development of advanced technology in new energy vehicles, offering more sustainable and efficient transportation options. As a result, individuals may have access to vehicles that are more environmentally friendly and technologically sophisticated.
Global Implications
On a global scale, this partnership represents a significant step towards the advancement of new energy vehicle technology. By leveraging the expertise of ECARX and its partners, Geely Auto aims to position itself as a leader in the electric vehicle market, potentially influencing the industry’s direction worldwide.
Conclusion
The agreement between ECARX Holdings, Inc. and Geely Auto marks a promising collaboration in the automotive industry, with the potential to drive innovation and sustainability in the new energy vehicle sector. As the partnership progresses, we can expect to see exciting developments that may shape the future of transportation both at an individual and global level.
