Taipei, Feb. 8, 2010 (CENS)--Simplo Technology Co., the world`s largest supplier of batteries for notebook PCs, has announced a plan to set up a joint venture with China Potevio of the mainland, an IT equipment supplier, so as to explore the segment for batteries for electric cars, according to the firm.

Simplo will invest RMB48 million for a 48% stake in the joint venture and take charge of its operations. The venture, located in Shanghai, China, will specialize in the development, production and sales of battery modules and battery charging systems for electric vehicles, and is scheduled to launch mass production starting next year. Simplo expects sales revenue of the joint venture to exceed tens of billions of NT dollars two years later.

Simplo indicated that the main factors that have made consumers hesitate to buy electric cars are high cost of batteries and high unit prices. Thus, the firm added, if batteries can rent for an economical price, consumers will be more willing to accept electric cars in the future. This is the strategy that the firm and China Potevio are going to adopt to push popularity of electrics cars in China.

Accordingly, China Potevio will run the business on a trial basis in China`s major metropolises as Chengdu, Shanghai and Beijing, and then extend its services to other cities.

China Potevio is active integrating supply chain of batteries and related key parts for electric cars this year, and plans to pour up to RMB8 billion into the business in the next five years, in hopes of boosting scale of the segment to over tens of billions of RMB. Presently, Simplo is the only battery supplier on China Potevio`s partner list.

(by Steve Chuang)