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A signing ceremony for constructing high-capacity lithium battery and new energy automobile, which was co-held by Guangdong Development and Reform Committee, Guangdong GRID Co., CITIC Guoan MGL, FOTON AUTO and Zhongshan Municipal Government, was held on 21st in Guangzhou. According to the plan, Zhongshan will become the largest production base of lithium battery and new energy automobile in south China. The production base will offer solutions for new energy transportation and a model operation will be demonstrated in Zhongshan. The base will become a demonstration base of green transportation in Guangdong and has its further influence nationalwide.

According to the contract, MGL will invest 15 billion yuan on projects concerning with motive battery and form an production capacity of 2 billion Ah of lithium battery, which will bring a total sale of 50 billion yuan. FOTON will invest 1.2 billion yuan for new energy automobile and accessories, which includes production of 10,000 commercial vehicles and 20,000 specialty vehicles. Guangdong Development and Reform Committee will support the development of new energy industry in Zhongshan and Guangdong GRID will push forward the construction of recharging station and poles and make probe into the commercial operation mode of new energy vehicles.

The base covers a land of 3 square km with total investment 40 billion yuan. The expected output value will reach 100 billionyuan and will be complete in 2013.