MKD sets up JV in Electric Trucks arena

Published: Dec. 1, 2021 at 6:36 AM CST

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.

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