(Yicai Global) Aug. 3 -- Eve Energy is to construct a CNY5.2 billion (USD805 million) lithium battery diaphragm plant together with Yunnan Energy New Material, the world’s largest manufacturer of battery separators, that will grant the Chinese battery giant first pick of products.

The new factory will have an annual capacity of 1.6 billion square meters and will be part of a lithium battery industrial park in Jingmen, northern Hubei province that Eve Energy is building. Yunnan Energy will invest CNY880 million (USD136.1 million) for a 55 percent stake and Eve Energy will pay CNY720 million for the remaining equity. No details were given about the construction schedule.

The plant will ensure stable supply of raw materials and help reduce procurement costs, Huizhou, Guangdong province-based Eve Energy said yesterday.

The collaboration will enable the two parties to integrate their respective resources and bring their competitive advantages into full play, Yunnan Energy said.

Eve Energy’s stock price [SHE:300014] closed down 3.38 percent today at CNY110.15 (USD17). Yuxi, southwestern Yunnan province-based Yunnan Energy’s shares [SHE:002812] gained 1.57 percent to CNY255.95.

Editor: Kim Taylor