Neta Auto, a Chinese electric vehicle (EV) startup based in Shanghai, and Contemporary Amperex Technology Co. Ltd. (CATL), a leading battery manufacturer (SHE: 300750), have inked a significant 10-year strategic partnership agreement.

The agreement was signed on May 24th in Shanghai with the attendance of prominent personalities such as Robin Zeng, CATL’s chairman and CEO; Fang Yunzhou, Neta’s founder and chairman; and Zhang Yong, Neta’s co-founder and CEO.

This collaboration, which is set to last from 2025 to 2034, confirms CATL as Neta’s preferred supplier of vehicle power batteries.

Under the terms of the agreement, CATL will provide Neta with competitive power battery products and services, as described in news statements from both firms.

Beyond the supply arrangement, the partnership covers a range of key areas, including zero-carbon initiatives, CATL Integrated Intelligent Chassis (CIIC), battery swapping, Vehicle-to-Grid (V2G) technology, battery recycling, and cooperative market development activities.

CATL and Neta have a long history of partnership, with the latter notably incorporating CATL batteries in its original model, as noted in the battery maker’s latest press release.

Neta’s objectives extend beyond its native market, as it seeks to become recognized as “the world’s Neta” rather than just “China’s Neta.”

The Neta S shooting brake, set to be released in the latter half of this year, will include the CIIC chassis developed jointly by Neta and CATL, as well as cutting-edge 800 V high-voltage fast-charging technology, according to Neta.

Neta operates as the electric vehicle (EV) arm of Hozon Auto, which was established in Oct 2014.

Debuting at the 2018 Guangzhou auto show, Neta’s inaugural model, the N01, has since been phased out.

A strategic cooperation agreement inked on Nov 8, 2021, solidified the collaboration between CATL and Neta, focusing on technology advancement and supply chain integration.

CATL would participate in Neta’s D2 round of financing, according to the latter’s statement at the time, which did not disclose the exact amount.

CATL is the world’s largest EV battery manufacturer, with a global market share of 36.8 percent in 2023, according to South Korean market analyst SNE Research.

However, the Chinese battery powerhouse is confronting competition from smaller businesses such as CALB, Gotion High-tech, and Sunwoda, requiring it to bolster its position through more aggressive actions.

On Jan 17, 2023, CATL and Nio (NYSE: NIO) signed a five-year strategic partnership agreement at their offices in Ningde, Fujian province.

The agreement encompasses technical collaboration on new brands, projects, and markets.

Nio and CATL signed a new collaboration agreement on March 14 of this year to produce long-life EV batteries.

CATL partnered with Volvo Cars on April 18 to recycle batteries and reuse materials.