NWTN, a Dubai-based mobility firm, has agreed to acquire about 27.5 percent of China Evergrande New Energy Vehicle Group's shares for $500 million.
NWTN will be able to propose a majority of the EV maker's board members thanks to the investment. NWTN stated that the proposed deal is expected to conclude in the fourth quarter of this year, subject to customary and other closing conditions.
Since its founding in 2019, the China Evergrande New Energy Vehicle Group has introduced nine new energy vehicle types. The Hengchi 5, the first model to be mass-produced, was delivered in October 2022.
NWTN stated that it hopes a cooperation with the Chinese EV producer will allow them to capitalise on synergies while also facilitating its research and development and mass manufacturing of new automobile models for future overseas exports.
"The firm feels that EVGRF can play a significant role in meeting the EV demands of the Middle East by assisting in resolving its short-term finance needs and collaborating with it to extend its market abroad," it said.
Many Middle Eastern countries are pushing low-carbon growth and green transformation in a variety of industries.
The UAE National Energy Strategy 2050 Update, which aims to raise the percentage of renewable energy to 30% by 2030, was recently authorised by the UAE government.
The country's EV market is anticipated to expand at a pace of more than 25 percent per year over the next five years, based on the company's study.
NWTN, a forward-thinking mobility and green energy firm, claims to have a fully functional car assembly factory located in Abu Dhabi, United Arab Emirates. It now has the capacity to produce green hydrogen, store energy, and generate solar electricity.
It stated that it has been carefully developing its company, contending for increasing markets in the Middle East, North Africa, China, and other nations across the world.
"In order to position itself as a leader in the future of mobility, NWTN places a strong emphasis on the use of AI technology, autonomous driving, and personalised passenger experiences," the firm stated.