Contemporary battery giant Contemporary Amperex Technology Co. Limited (CATL) and Fujian Provincial Automotive Transport Group (Minyun Group) signed a strategic cooperation framework in Ningde, Fujian, committing to deepen collaboration on vehicle aftermarket services, build city‑scale battery‑swap networks and develop vehicle‑to‑grid (V2G) technologies. The memorandum, signed in CATL’s home province, frames a partnership focused on public‑transport electrification rather than passenger electric cars, signalling an institutional push to decarbonise city fleets.
The deal pairs China’s leading battery supplier with a provincially owned transport operator that runs urban and intercity bus services across Fujian. For Minyun Group, the agreement offers technical and supply‑chain access to a dominant battery maker; for CATL, it provides guaranteed demand, a testbed for new service models and an opportunity to expand beyond cell manufacturing into operations and grid services.
Battery swapping and V2G are complementary elements of the plan. Swap stations promise faster vehicle turnaround than overnight depot charging and could lower total cost of ownership for transit fleets; V2G systems allow parked buses to act as mobile storage units, feeding electricity back to the grid during peaks or providing ancillary services that stabilise local networks. Both technologies are gaining traction in China as municipalities seek to balance electrification targets with grid reliability and operational efficiency.
The pact also reflects a broader strategic trajectory for CATL: moving up the value chain into energy services and system integration. That shift helps the company capture recurring revenues from aftermarket services, charging infrastructure and grid‑level storage, while supporting China’s national targets to electrify public transport and cut urban emissions. Local partnerships with state‑owned operators smooth deployment and offer political backing for pilot projects.
Challenges remain. City‑scale swap networks and V2G require technical interoperability, robust standards and investment in grid upgrades; bus depots vary in layout and operational requirements, complicating rollouts. Financial arrangements — who pays for infrastructure, how batteries are monetised, and how asset ownership is apportioned — will determine whether the model scales beyond initial pilots in Fujian.
If successful, the collaboration could become a template for other provinces and portend a new phase in China’s electric mobility rollout where battery makers, utilities and transport operators coordinate closely. That could lower barriers to electrifying fleets at scale, accelerate the commercialisation of battery‑as‑a‑service models and boost demand for domestic battery production and energy management solutions.