Lizhong Sitong Light Alloys Group has bagged a contract worth US$ 240 million (RMB 1.8 billion), under which it becomes the authentic supplier of aluminium alloy wheels for a leading Chinese electric car company's latest model.
Lizhong unit Baoding Lizhong Wheel has been entrusted with the responsibility of providing aluminium alloy wheels for high-end electric cars, as was informed by the parent company. Though the Chinese car maker's name remains undisclosed, commercial production of the wheels is expected to start by the second half of next year. These aluminium alloy wheels will have a utility time of at least three years.
The wheels have been aligned with the client's newly developed chassis, and they can be used in similar models in the upcoming days, the Baoding headquartered company affirmed.
This order is a significant step for Lizhong as this has the potential to launch the company globally as a bespoke supplier of heat treatment-free and high-performance aluminium alloy wheels that are totally compatible with the swiftly emerging Electric Vehicle (EV) sector.
The previous year, Lizhong successfully sold 14.7 million aluminium alloy wheels, of which only 1.2 million were designated for Neighbourhood Electric Vehicles (NEVs). The NEV market assimilated almost US$ 77.1 million (RMB 562 million) or 2.6 per cent of the wheelmaker's total sales in 2022.
If your interest lies in the automobile and transport sector, please have a look at AL Circle's specially formulated report, Future of Aluminium in the Transportation Sector.
With the signing of the deal, Lizhong's shares have inched up 1.7 per cent to reach RMB 21.47 per stock (US$2.94) in the Shanghai Stock Exchange, with a wholesome 1.1 per cent spike.
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