(Yicai Global) Sept. 16 -- Senior Technology Material, one of China's leading battery separator providers, will start making new energy vehicle battery components for Sweden's Northvolt at its new Swedish plant in 2022.
The Chinese company will invest CNY130 million (USD19.2 million) to finish the first phase of the facility which involves four production lines with an annual capacity of 90 million square meters of coated diaphragm, the Shenzhen-based firm announced yesterday.
Europe's vehicle electrification has led to a sharp rise in the local demand for batteries, the company explained.
Senior Technology Material agreed with battery maker Northvolt in March to invest CNY2 billion (USD294.9 million) to set up plants in Sweden and Germany to supply more than half of the separators that the Stockholm-based firm needs. Before the factories are ready, the Chinese company's plant in Jiangsu province will fill in the void.
Founded in 2003, Senior Technology Material boasts several notable clients, including South Korea's LG. In the first half of last year, its separator sales volume jumped 36 percent to 152.7 million square meters from a year ago, according to its financial statement.
Senior Technology Material’s stock price [SHE:300568] fell 0.5 percent to CNY20 (USD3) this morning.
Editor: Emmi Laine