Kandi is the only EV supplier to participate, while other involved firms will deliver the batteries and charging by the local utility, which will also fund construction of a charging and battery swap station network along with paying for the batteries.
Under the agreement, Kandi Technologies’ wholly owned subsidiary, Zhejiang Kandi Vehicles Co., Ltd. will cooperate with China Aviation Lithium Battery Co., Ltd. (CALB), a subsidiary of Aviation Industry Corporation of China (AVIC).
AVIC/CALB will be responsible to produce automobile-use lithium batteries and purchase 20,000 electric vehicles for personal leasing, while the Chinese State Grid will be responsible for the construction and supply of the charging network to power the operation of 20,000 electric cars 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 electric cars.
The program will begin in August this year and expected to be completed by the end of 2013.