The three-way joint venture agreement was announced by Scottsdale-based RONN Motor Group.
The zero-emission automaker and leader in hydrogen technology, RONN Motor Group, Inc. has teamed up with two joint venture partners in China to manufacture, sell and develop hydrogen fuel cell vehicles.
The new partnership will allow RONN Motor Group to take advantage of China’s new hydrogen fuel initiative.
RONN will retain 51% controlling interest of the three-way joint venture agreement with $100 million registered capital, while it’s two partners will retain 30% and 19% collectively of the joint venture, according to a recent RONN Motor Group press release.
As part of the agreement, RONN Motor Group will supply ten million shares priced at $5.00 per share, automotive engineering skills, clean energy expertise, fuel cells and graphene-related patents and a portfolio of patented Nano-composite technology.
As for the contributions made by the two joint venture partners, these include more than 3 million square feet of manufacturing space in two factories. The manufacturing capacities of these combined factories would potentially be up to 300,000 vehicles (including hydrogen fuel cell vehicles) every year with equipment and a full set of electric vehicle manufacturing licenses.
Another part of the agreement is for RONN Motor Group to be paid $24 million in cash based on manufacturing milestones.
In addition to hydrogen fuel cell vehicles, RONN also intends to bring hydrogen infrastructure to China.
The initial push of the joint venture would be toward lightweight, Nano-composite, commercial vehicles, such as zero-emission buses and hydrogen fuel cell/battery power systems, according to RONN Motor Group CEO, Ronn Ford.
Additionally, Ford commented that RONN Motor Group has been in negotiations with a number of China’s provinces to build a super-factory for the purpose of producing a full line of mid-level to luxury passenger vehicles and SUVs. This will reportedly start with Phoenix, the next generation all electric hydrogen fuel cell/battery sports car. Furthermore, RONN plans to develop hydrogen infrastructure as part of a super factory.
Mr. Meng, Founder/Chairman of Jiangsu Hanwei Automotive, Co., LTD and Dr. Wong, founder and Chairman of Durabl Motors Co., said in the press release that the People’s Republic of China is committed to moving the country to a 100% zero-emission NEV (new energy vehicle) lifestyle. This includes hydrogen fuel cell vehicles and other sustainable hydrogen fuel cell technologies, which have gained market share and speed with the end of China’s fossil fuel mandate, which started on January 1 of this year (2019).