Total subsidiary Saft is to form a joint venture with Chinese company Tianneng Energy Technology to boost the output of lithium-ion batteries for energy storage and e-mobility markets.
Saft will own 40% of the JV, with Tianneng holding the remainder.
Manufacturing will be based at a facility in Changxing, which has a potential capacity of 5.5 gigawatt-hours, the partners said.
The JV will target energy storage markets, as well as e-bikes and electric vehicles.
Total chief executive Patrick Pouyanne said: “This is the first strategic move driven by Total, following its acquisition of Taft in 2016, to grow Saft’s activity in China, the world’s largest renewables market, as well as in the (energy storage solutions) segment as an essential component to the large-scale deployment of intermittent renewable energies.
“The JV will allow Saft to join forces with a Chinese partner, a world leading acid battery manufacturer, willing to develop its lithium-ion activities.
“It will also give Saft access to China’s booming battery market as well as highly-competitive mass production capacity to accelerate growth.”
Tianneng chairman Tianren Zhang said: “This partnership enables us to benefit from Saft’s 30 years of experience and strong technical leadership in Li-ion cells.
“Saft’s outstanding reputation for high quality products will be crucial in providing the JV with the market credibility vital to expand our business.”
Saft chief executive Ghislain Lescuyer said: “We are delighted to start building a long-term partnership with Tianneng with a shared industrial vision.
“This JV will allow us to make a step change and significantly increase out footprint in the Chinese Li-ion market.”