Evergrande Health pays US$930 million to buy control of carmaker in its foray into mass production of electric vehicles in China – SCMP

What happened: Evergrande Health has purchased a 51% stake in electric vehicle manufacturer National Electric Vehicle Sweden (NEVS), marking its second foray into the electric car industry. The $930 million deal saw the company pay $430 million on Tuesday with the balance due by the end of the month. NEVS is Chinese consortium is owned by the municipal government of Tianjin—a city in northern China, among others.

Why it’s important: NEVS already has two vehicles that meet standards for mass production in China. The investment bolsters Evergrande’s plans to diversify its business to include electric vehicles, a move that hasn’t been without difficulties. Evergrande Health recently resolved a spat with Faraday Future, another electric vehicle company in which it has invested. The months-long conflict, which included arbitration in Hong Kong, came to an end after it agreed to restructure its pledge to the electric vehicle maker.

Christopher Udemans is TechNode's former Shanghai-based data and graphics reporter. He covered Chinese artificial intelligence, mobility, cleantech, and cybersecurity.

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