Avatar Technology (Chongqing) Co., Ltd. plans to secure finances worth 2.42 billion yuan ($378 million) with three new investors, including Chinese battery giant CATL, Chongqing Changan Auto Company, Avatar’s parent company, said in a statement. Under the plans, CATL will become the tech company’s second-largest shareholder.

When the deal is completed, Changan’s stake in Avatar will be reduced to 39.02%, CATL will have 23.99% and Chongqing Chengan, a private equity investment fund, will hold a 19.01% stake. All investment will be in cash. The deal is now awaiting final approval from Chinese market regulators.

Tan Benhong, Chairman and CEO of Avatar Technology, said, “In the next step, Avatar will soon launch the A round of financing, and there will be an independent listing plan in the future to introduce more strategic partners with diversified backgrounds and great strength.”

Avatar was established as Changan NIO, a joint venture between Changan and NIO, in 2018. In May this year, its name was changed to Avatar as itstarted independent operation. Together with Changan, Huawei and CATL, the renamed tech company creates an independent and controllable intelligent electric network automobile platform – CHN.

On August 20, Avatar Technology was publicly listed on the Chongqing Assets and Equity Exchange, thus establishing a link with the capital market, aiming to introduce strategic and local industrial investors.

SEE ALSO: CATL to Provide Battery Capacity for SUVs Owned by Fisker in 2023-2025

At the Science and Technology Ecology Conference on August 24, Changan confirmed the brand name of Avatar and released the side design of Avatar’s first car E11 which will be “equipped with Huawei Inside smart car solution and the latest electrification technology of CATL.” In the next five years, Avatar Technology will launch five products based on CHN architecture.