China's Geely Auto announced the formation of a new electric car brand, Zeekr, on Tuesday, whose first vehicle will be delivered in the third quarter this year.

The brand will focus on the Chinese market in the beginning but will also explore overseas opportunities to meet global market demand for premium electric vehicles, said the company.

With a registered capital of 2 billion yuan ($307 million), Zeekr is a joint venture between Geely Auto and its parent company Geely Holding Group.

As planned, Zeekr aims to deliver a new electric vehicle to market each year in the coming five years. Geely Holding will undertake their production.

Zeekr will leverage Geely Holding's research and development results, including the leading Sustainable Experience Architecture that enables software upgrades over the air.

The architecture was unveiled in late 2020, and a number of models with the group are built on it. Geely's joint venture with China's technology company Baidu will use the architecture as well.

But Zeekr will use its own battery technologies, battery management systems, electric motor technologies and electric vehicle supply chains, said the company.

Zeekr is Geely Holding's latest electrification initiative. Volvo, which Geely Holding acquired in 2010, have announced to become fully electric by 2030.

Other brands, including Lynk & Co, Polestar, LEVC, Geometry and Lotus, will continue to explore their market segments with a wide range of electrified products.