(Yicai Global) Aug. 9 -- A unit of electronic chemical firm Capchem Technology will build a plant to process raw materials for lithium-ion batteries in central Hunan province to extend its chain of products.

Bofu New Material Technology will invest CNY490 million (USD71.8 million) to construct a factory that can produce up to 2,400 tons of lithium bis (fluorosulfonyl) imide, also known as LiFSI, each year, the Shenzhen-based parent said in a statement. The project will be ready in the third quarter of 2020. 

LiFSI has been studied as a conducting salt for rechargeable batteries to boost their efficacy. Capchem anticipates its demand to rise up to 400 tons of lithium salts annually in the next two years as the world is set to require more power sources to fuel the emergent research fields such as new energy vehicles and the Internet of Things.

The new factory will help to highlight the company's core competitive advantages in the lithium-ion battery electrolyte field and bolster overall profitability at home and abroad.

Editor: Emmi Laine