The State Grid Corporation of China revealed that one of its subsidiaries has set up a joint venture with a subsidiary of China Evergrande Group, one of the country’s major real estate developers, to tap the country’s electric vehicle recharging market.
Each company holds a 50% stake in the joint venture,the State Grid Evergrande Smart Power Service Company, which has RMB 180 million (USD 26 million) in registered capital.
The JV will make use of the grid operator’s electricity resources and properties under Evergrande’s management to develop recharging facilities. The State Grid’s subsidiary has already signed up more than 30 operators to operate 170,000 charging stations.
The State Grid supplies power to over 1.1 billion people in China, covering 88% of the country’s territory. The company also claims to be the largest public utility in the world, with registered capital of RMB 829.5 billion and assets worth RMB 3.8 trillion located in China and other countries such as the Philippines, Brazil, Portugal, Australia, Italy, and Greece.
Evergrande claims that it has built more than 810 property projects in 280 cities in China. The company also says that it aims to be the largest and most robust new energy vehicle company in the world within three to five years.
Following five acquisitions in the EV sector this year, Evergrande has rolled out its first mass-produced EV, the NEVS 93.
At present, EV recharging facilities are in short supply in China, so various companies are diving in to develop the required infrastructure for owners of NEVs.
Aiming to establish smart charging infrastructure in China, Volkswagen established a joint venture with two Chinese automakers and Star Charge, one of China’s leading EV charging operators.
Didi Chuxing, China’s largest ride-hailing platform, has also entered into a partnership with the government of Hainan province and China Southern Power Grid to provide comprehensive EV service solutions on the tropical island. China Southern Power Grid, which is another major power grid operator in China, now has an EV charging network connecting over 100,000 charging points across Guangdong, Guangxi, Yunnan, Guizhou, and Hainan.