Not discouraged by hard breakup with Faraday, China’s Evergrande turns to a second Swedish car maker to pursue EV dream

Amidst the Middle Kingdom’s push towards greener transportation, Chinese developer Evergrande’s healthcare unit enters an agreement to set up a joint venture with Koenigsegg Automotive AB

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Not discouraged by hard breakup with Faraday, China’s Evergrande turns to a second Swedish car maker to pursue EV dream

Amidst the Middle Kingdom’s push towards greener transportation, Chinese developer Evergrande’s healthcare unit enters an agreement to set up a joint venture with Koenigsegg Automotive AB (KAAB), a Swedish supercar company, according to the business’s filings with the Hong Kong bourse.

The deal, made between NEVS, a subsidiary of Evergrande Health, and KAAB, will see NEVS pay US$ 150 million to take a 65% stake in the joint venture, with KAAB taking the rest. NEVS also needs to invest an extra $70 million prior to the production of the car.

In the same filing, Evergrande Health also disclosed that NEVS would pay a total of EUR150 million (US$171 million) to buy for-sale shares and new shares from the KAAB’s  parent company Alpraaz AB. However, the filing does not disclose the stake NEVS would take in Alpraaz.

Evergrande Health believes that the move will enhance its position in the global new energy vehicle landscape, as the world is switching from gasoline cars to new energy cars.

The move follows its break-up with Faraday Future, another EV maker it invested last year but has been plagued by funding and production issues recently.

Editor: Ben Jiang