AsianFin -- China FAW Group is preparing to acquire a roughly 10% stake in electric vehicle manufacturer Leapmotor, becoming a strategic shareholder, according to a person familiar with the matter.

The move follows a strategic cooperation memorandum of understanding signed between FAW and Leapmotor on March 3. The partnership spans two areas: joint development of new energy passenger vehicles and components, leveraging both companies’ R&D capabilities to enhance product competitiveness; and potential capital cooperation aimed at achieving full value-chain resource integration.

Just 20 days after the MoU was signed, FAW’s e-bidding platform disclosed that Hongqi’s G117 model joint development and platform licensing procurement project had been awarded to Leapmotor Technology Co., Ltd.

Leapmotor’s financial report confirmed that the first jointly developed vehicle project with FAW has already been launched, with further collaboration under active discussion. Both sides are expected to continue exploring capital cooperation to deepen integration across the supply chain.