(Yicai Global) May 24 -- China’s Yunnan Energy New Materials has become the lithium battery separator supplier to the battery joint venture of Toyota Motor and Panasonic.

Yunnan Energy’s unit Zhuhai Energy New Material Technology will provide lithium battery separators to Prime Planet Energy & Solutions between next year and 2028 in a deal expected to earn the firm a total of CNY2.6 billion (USD375 million), the Yuxi-based supplier said yesterday.

Founded in early 2020, PPES mainly develops and produces square lithium-ion batteries. Toyota owns 51 percent of the JV, and Panasonic the rest.

The order will improve Yunnan Energy’s profitability and competitiveness in the global market and positively affect its business performance over the five-year period, the firm added.

Shares of Yunnan Energy [SHE: 002812] finished 2.7 percent lower at CNY100.03 (USD14.19) apiece today. The broader Shenzhen market fell 0.8 percent.

Editor: Futura Costaglione