(Yicai Global) April 18 -- Zhejiang Baida Precision Manufacturing, a Chinese supplier of precision components for cars, is moving into the photovoltaic sector with a new solar battery factory, and will bring in PV panel giant Jolywood Sunwatt as a partner and technical advisor.

The facility, which will be located in Jiujiang, eastern Jiangxi province, will have an annual capacity of 13.5 gigawatts of solar cells, Baida Precision said yesterday. Jolywood will provide the expertise in high-efficiency PV cell technology, and in return Baida will pay Jolywood a fee of CNY50 million (USD7.2 million).

The first phase of the plant, costing CNY1.4 billion (USD213 million), will produce 4.5 GW of TOPCon high-efficiency solar cells per year, the company said. Construction will take 10 months. The second and final phase will be added once the first phase has reached full capacity. No further details about the investment amount were given.

Baida Precision and Jollywood will buy out Baida Precision’s former partner Rechi Holding from the company that will operate the project. Baida Precision will increase its stake to 85 percent from 70 percent and Jolywood will purchase the remaining 15 percent stake for CNY45.9 million.

Jolywood and its subsidiaries will also be granted preferential purchase rights of half of the solar cell production, Jolywood said in a separate statement yesterday.

The tie-up with Taizhou, eastern Zhejiang province-based Baida Precision will not only provide Jolywood with a channel to export its advanced battery technology, but the cooperation between the two parties in the production and sales of PV batteries will help boost market share.

Jolywood, which has been branching out into PV cells in recent years, is also building a high-efficiency solar cell factory in Taiyuan, northern Shanxi province with an annual capacity of 16 GW. Part of the plant has already started operating.

Jolywood’s share price [SHE:300393] was trading flat at CNY14.93 (USD2.17) as of 1.30 p.m. China time today. Baida Precision’s stock [SHA:603331] was also flat at CNY14.91.

Editor: Kim Taylor