This photo taken on May 22, 2024 shows a "light-out" factory of Baosteel in east China's Shanghai. [Photo/Xinhua]

Kobelco Baosteel Automotive Aluminum Rolled Products Co., Ltd., a Sino-Japanese joint venture specializing in automotive aluminum sheets, was officially unveiled in Shanghai on Thursday. The occasion signified strengthened collaboration between Chinese and Japanese enterprises in the automotive materials sector.

The company, jointly established by China's Baoshan Iron and Steel Co., Ltd. (Baosteel), Baowu Aluminum Technology Co., Ltd. and Japan's Kobe Steel, has a registered capital of nearly 1 billion yuan (about 139.4 million U.S. dollars).

With an equal investment from China and Japan, the joint venture will supply environmentally friendly aluminum sheets to automakers.

As aluminum plays a crucial role in vehicle lightweighting, the rapid expansion of electric vehicle production presents a significant market opportunity. China's demand for automotive aluminum sheets is projected to grow from 442,000 tonnes in 2024 to 657,000 tonnes by 2027.

The company said that it aims to leverage Baosteel's and Kobe Steel's technological expertise, manufacturing efficiency and global market strategy to enhance the supply of high-end automotive aluminum sheets.

Zou Jixin, chairman of Baosteel, said that the joint venture strengthens Sino-Japanese strategic cooperation, fostering complementary advantages while aligning with the industry's shift toward green and low-carbon development.

The unveiling of the venture follows a trend of increased foreign investment in China's automotive sector, with Shanghai serving as an important base.

Earlier this month, Japanese automaker Toyota Motor Corp. announced plans to build a new wholly-owned electric vehicle manufacturing plant in Shanghai. U.S. carmaker Tesla's new Megafactory, dedicated to making energy-storage batteries known as Megapacks, began production on Tuesday in Shanghai.