Faraday Future signs new joint venture agreement with The9 Limited
Faraday Future, a California-based global shared intelligent mobility company, announced that it has signed a joint venture agreement with The9 Limited, a China-based Internet company, to form a joint venture to manufacture, market, distribute, and sell luxury intelligent electric vehicles in China.
The JV’s immediate objective is to exclusively manufacture, market, distribute, and sell Faraday Future’s new brand V9 model, a flagship luxury EV model designed and developed by FF. Other future models could be created with additional agreements.
The9’s international team and its familiarity with the U.S. capital markets is supposed to help to establish a global team for the JV’s management and operations. Moreover, the JV is expected to leverage The9’s industry reputation and existing business intelligence for the JV’s marketing implementation, especially in China.
FF says this is the beginning of a series of strategic actions for the company designed to support the completion and launch of its “new species of vehicle mobility” FF 91 EV in 2019 and continue development of the mass-market premium FF 81 under its dual-home-market and dual-brand strategy in both the U.S. as well as China. FF says it continues to make steady progress in the U.S. on its FF 91 flagship, readying it for final production later this year.
Under the JVA, The9 will make capital contributions of up to $600 million to the JV, and FF will make in-kind contributions to the JV, including FF’s use rights to a piece of land located in China for luxury EV manufacturing and an exclusive license to manufacture, market, distribute, and sell Faraday Future’s new brand V9 model and potentially other select future car models in China. The expected annual production capacity of the joint venture is 300,000 cars, and the first pre-production car is expected to roll off the production line in 2020.
FF’s first FF 91 pre-production car was delivered last August at its manufacturing facility in Hanford, CA., the company’s production site in the U.S. Currently, multiple pre-production vehicles are undergoing vigorous testing and validation processes, with the goal of final delivery later this year.