Evergrande Group, China’s leading real estate developer, is making even more inroads into electric vehicle (EV) manufacturing.
Evergrande Health, which has a 77.5% stake owned by Evergrande Group, announced Friday in a filing that, together with its subsidiaries, the company has agreed to buy a 70% share of auto parts maker TeT Drive Technology Co. Ltd for RMB 500 million (US$74.5 million).
TeT Drive is headquartered in central China’s Hubei province, and wholly owns EV motor producer e-Traction, which was established in 1981 and is headquartered in the Netherlands.
“e-Traction has production layouts in the Netherlands and China, and its products have been widely applied in 14 cities across eight countries in Europe since 2009,” said Evergrande Health in its filing.
Evergrande Health previously maintained investment agreements with Los Angeles-based EV company Faraday Future, but had severed those ties. In January, the company made three moves that laid the foundation for its reentry into the EV sector—it gained controlling stakes in Swedish automaker NEVS and car battery producer Shanghai CENAT New Energy, and set up a joint venture with Koenigsegg Automotive AB.