The Chinese state-owned automaker FAW Group will invest 3.74 billion yuan (530 million USD) in Leapmotor NEV manufacturer as the two companies signed an investment & cooperation agreement in China. Leapmotor and FAW will reveal a jointly developed car next year.
The partnership between FAW and Leapmotor became a hot topic of discussion in March 2025 as the two companies signed the Memorandum of Understanding. They announced cooperation in the development of new energy vehicles and the creation of the parts supply chain. In August 2025, FAW Group was rumored to acquire a 10% equity stake in Leapmotor. However, the two sides deflated such statements.
In early December 2025, the two companies made headlines again as various sources reported that FAW’s investment in Leapmotor is nearing its final stages. On December 29, FAW & Leapmotor confirmed this information.
FAW will invest in Leapmotor
On December 28, FAW Group and Leapmotor held a signing ceremony in Hangzhou, with FAW Equity Investment (Tianjin) and FAW Qixin Power (Changchun) reaching an investment and cooperation agreement with Leapmotor.
FAW Equity Investment (Tianjin) will acquire 5% equity in Leapmotor by purchasing 74,832,245 shares with a price of 50.03 yuan (7.12 USD) per share. It means the state-owned automaker will invest around 3.74 billion yuan (530 million USD) in the Stellantis-backed company. As a result, FAW Equity will become a strategic shareholder.
At the same time, FAW Qixin Power and Leapmotor will promote the joint development of plug-in hybrid electric vehicles (PHEV) and extended range electric vehicles (EREV). IT Home highlighted that approximately 50% of FAW’s investments will be used for R&D. Around 25% will be used to supplement working capital and for general corporate purposes, and approximately 25% will be used to expand the sales and service network.
We will remind you that Stellantis made a strategic investment in Leapmotor, acquiring a 20% stake for 1.5 billion EUR (1.77 billion USD) in late 2023. In 2025, Leapmotor became the second Chinese EV startup to reach net profit (after Li Auto). Its full-year sales are approaching 600,000 units. Next year, the automaker aims to sell 1 million cars globally. It will also start production in Spain.
Leapmotor Chairman Zhu Jiangming shared that the first model jointly developed by FAW and Leapmotor will be unveiled next year, marking the beginning of a new model of cooperation between state-owned and private enterprises. The company will also kick off sales of two flagship models next year: the D19 SUV and the D99 minivan. Their EREV variants adopt 80.3 kWh batteries.
