Chinese autonomous aerial vehicle (AAV) technology company EHang Holdings Limited (Nasdaq: EH) is to set up an eVTOL joint venture with Zhuhai Enpower Electric Co Ltd (300681.SZ).

Enpower announced late Wednesday that the company and Ehang intend to set up a joint venture with an investment of 10 million yuan, of which Enpower will contribute 6 million yuan and hold 60% and Ehang will contribute 4 million yuan and hold 40%.

The joint venture company will carry out in-depth cooperation around the production and manufacturing of eVTOL products and the upstream parts industry chain, responsible for the production of various processes and parts before the final assembly of Ehang eVTOLs, as well as the process optimization and technical transformation of Ehang's Yunfu factory and other production bases.

Enpower said that this foreign investment is conducive to the implementation of the company's development strategy and further enhance the company's comprehensive competitiveness.