MKD sets up JV in Electric Trucks arena
Molecular Data has formed a joint venture with GY Energy Tech to enhance diesel truck replacement with efficient new energy trucks through a 'truck battery separation' model. This initiative aims to construct battery replacement stations, charging stations, and provide logistics management services across various industries. With China's carbon neutrality goals, the venture addresses the urgent need for cleaner transportation solutions. Hainan province plans to ban fuel vehicle sales by 2030, indicating significant market opportunities for electric trucks. The joint venture's approach also targets cost reduction and operational efficiency.
- Joint venture with GY Energy Tech enhances electric truck infrastructure.
- Focus on 'truck battery separation' model boosts operational efficiency.
- Aligns with China's targets for carbon emissions reduction and cleaner transport.
- Significant market opportunity with Hainan's 2030 fuel vehicle sales ban.
- None.
SHANGHAI, Dec. 1, 2021 /PRNewswire/ -- Molecular Data Inc. (NASDAQ: MKD) has announced a joint venture (JV) with GY Energy Tech (a company funded by several PRC Energy SOEs).
The JV will help diesel trucks to be replaced with more efficient new energy trucks ("truck battery separation" mode). The JV will involve constructions of stations to efficiently replace batteries, battery replacement services, charging stations, and logistics management platform.
The services rendered will not only cover the existing chemical space, it will seek to serve various industries.
In the context of the "carbon emission peak, carbon neutrality" target, this has driven all the municipality governments to achieve this "double carbon" policy.
At the current juncture, high energy consumption and high emission manufacturing enterprises are facing great pressure to reduce carbon emissions. In order to achieve the low-carbon environment, an efficient and clean transportation mode is particularly critical.
As such, the imminent trend is to speed up the replacement of traditional fuel trucks with new energy trucks.
According to the PRC's "double carbon" target, Hainan will become the first province to prohibit the sale of fuel vehicles in 2030, which will bring new development opportunities in the electrification of trucks.
Electric Trucks allows for a quick replacement of a discharged battery with a fully fresh charged one, with the replacement process typically taking less than 5 minutes.
What distinguishes this joint venture from others is the trucks' batteries and the trucks can be separated, which makes it a more effective pathway to electrify trucks. Such heavy duty trucks are also lighter, and thus increases operational efficiency.
The JV's "truck battery separation" mode will not only effectively reduce the cost of truck purchase, it also provides a comprehensive solution for fuel trucks and typical electric trucks in solving both their pain points, helping enterprises achieve the goal of both cost-savings and efficiency increases. .
At present, the JV's "truck battery separation" mode can be used in power plants, ports, steel mills, mining fields. Other areas that can sustain independent business models include slags arising from mining and infrastructural developments, and garbage removal. All these will create sustainable prospects for the "truck battery separation" mode in the long run.
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SOURCE Molecular Data Inc.
FAQ
What is the joint venture announced by Molecular Data (MKD) on December 1, 2021?
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