Lithium battery joint venture established by Hangcha and Manitou in France
A significant strategic move has been made in the industrial vehicle market with the formation of a joint venture (JV) between Chinese industrial vehicle manufacturer Hangcha and French company Manitou. The JV, established with a focus on manufacturing and distributing lithium-ion batteries for industrial vehicles, is set to revolutionize the industry.
The venture, headquartered in Le Mans, France, awaits approval from European competition authorities and will operate independently. It aims to leverage Hangcha’s battery production expertise combined with Manitou’s material handling industry experience.
The main objectives of the JV are to produce lithium-ion batteries that offer 50%+ higher energy density, enable fast charging within 1-2 hours, have 3-5 times longer lifespan than traditional batteries, be lighter in weight, maintenance-free, and include smart management systems to boost operational efficiency and reduce costs. These batteries also support environmental goals as they produce zero emissions and contain no toxic materials, enhancing safety and sustainability.
One of the key aspects of this partnership is enabling customers to replace conventional lead-acid batteries with these advanced lithium-ion solutions, thereby extending the operational life of industrial vehicles such as forklifts. The collaboration supports Manitou’s strategic “LIFT” roadmap, aiming to increase electric model sales to 28% of total units by 2030, including Manitou’s ME LIFT forklifts launching at the end of 2024.
The JV will also contribute to the acceleration of electrification transformation, as it plans to produce 500,000 lithium-ion batteries annually. Its first product will be a 120kWh lithium-ion battery designed for heavy-duty industrial vehicles, with mass production expected by the end of 2023.
The JV's battery technology will be based on Hangcha's proprietary lithium iron phosphate battery technology, aiming to reduce the cost of lithium-ion batteries by 30% compared to current market prices. This cost reduction, combined with the batteries' improved performance, is expected to play a significant role in the electrification of industrial vehicles.
The JV will be located in Hangcha’s new battery factory in China, and it is a part of Hangcha's strategy to expand globally. The venture is also anticipated to create over 1,000 jobs in China and will collaborate with Manitou to develop a range of electric industrial vehicles.
Zhao Limin, Chairman and General Manager of Hangcha, stated that the JV marks a new phase in the partnership between the two companies. He also mentioned that the JV will leverage Hangcha's core technological and manufacturing strengths in lithium battery solutions to drive sustainable development in the industrial vehicle market.
Overall, the joint venture represents a significant strategic move to accelerate the energy transition in industrial vehicle markets by increasing lithium-ion battery production capacity and strengthening low-carbon industrial capabilities, aligning with both companies’ growth and sustainability targets.
The joint venture, based on Hangcha's proprietary lithium iron phosphate battery technology, aims to produce lithium-ion batteries with improved performance and a 30% lower cost compared to current market prices, leveraging technology for a significant role in the electrification of industrial vehicles.
The collaboration between Hangcha and Manitou is set to revolutionize the industrial vehicle market, with the JV's objective to create over 1,000 jobs in China and contribute to the acceleration of electrification transformation, producing 500,000 lithium-ion batteries annually.
