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Faraday Future and The9 form joint venture

By Fan Feifei | chinadaily.com.cn | Updated: 2019-03-25 19:42
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Jia Yueting, CEO of Faraday Future, speaks during an unveiling event for the FF 91 electric car in Las Vegas, Nevada, Jan 3, 2017. [Photo/VCG]

Electric vehicle startup Faraday Future have signed a joint venture agreement with The9 Ltd to manufacture, market, distribute, and sell luxury, intelligent electric vehicles in China.

The9, a Chinese game operator and developer, will take a 50 percent stake in the joint venture, contributing $600 million and controlling certain strategic business operations.

Faraday Future, founded by Chinese billionaire tech entrepreneur Jia Yueting, will make in-kind contributions to the venture.

These contributions will include use rights to a piece of land for electric vehicle manufacturing, and an exclusive license to manufacture, market, distribute and sell the company's new V9 model and potentially other future models.

The expected annual production capacity of the venture is 300,000 cars, and the first pre-production car is expected to roll off the production line in 2020.

"Through the establishment of the joint venture, we are able to implement our dual-home-market and dual-brand strategy, and achieve our strategic goal of introducing our new luxury electric vehicle brand in China," said Jia Yueting, CEO.

The9 is an internet company based in China, listed on the Nasdaq since 2004, with over a decade's experience in both the internet industry and capital markets.

The9's first installment of capital will help Faraday Future overcome short-term cash-flow difficulties and support its ongoing equity financing efforts.

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