German auto parts supplier Hella GmbH has bolstered its activities in China with the signing of two agreements with Chinese partners.
The company has entered into a three-way partnership with Chinese automotive parts supplier BHAP and U.S. battery specialist Farasis Energy Inc. to develop battery management systems for 12 and 48 volt electric systems for vehicles as well as high-voltage applications.
As part of the Chinese automaker BAIC Group, BHAP will ensure market access for the products, particularly within the BAIC brands.
Hella will contribute its hardware and software expertise to the partnership while Farasis brings its know-how and experience with the battery cell production, Hella said in an April 17 statement.
The cooperation will focus on meeting demand in the Chinese market and is expected to be further developed by the end of this year.
Hella and BHAP already have two existing joint ventures which are active in the development and production of lighting systems as well as electronic components for the Chinese market.
The new partnership, according to Hella, will investigate the establishment of a new joint venture in China.
Additionally, during Auto Shanghai trade show, held April 18-25, Hella signed a strategic cooperation agreement with Wuling Automotive Industry, part of the Chinese Guangxi Automobile Group.
The two partners will be working on automotive lighting technologies for the Chinese market, with a particular focus on the development of headlamps for the volume segment.
Hella also expects this partnership to be "further substantiated" in the coming months. The two companies will be particularly aiming to supply to the Chinese car maker SAIC-GM-Wuling Automobile.
"China is and remains one of the key automotive markets for Hella", said Hella CEO Rolf Breidenbach ahead of the car show in Shanghai.
According to Breidenbach, Hella is "systematically expanding" its activities in China through partnerships, in order to address the growing market in China for autonomous and electric vehicles.