Beiqi Foton Motor (SHA:600166) set up a 50-50 joint venture leasing joint venture with EVE Energy (SHE:300014) for electric heavy-duty trucks, according to a Tuesday filing with the Shanghai Stock Exchange.

Foton and EVE Energy will invest 250 million yuan each in the joint venture, set to give customers diversified battery leasing options, support power battery cost reduction, and boost profit margins of new energy heavy trucks.

Batteries comprise between 40% to 60% of the cost of new energy vehicles, and leasing could help reduce prices, Yicai Global reported separately the same day.