(Yicai) Dec. 8 -- Chinese photoelectronic product supplier Guangpu Electronics intends to invest CNY2 billion (USD280.8 million) to build a plant making a new material used in power or energy storage battery parts.

The new plant, located in Wuhe county in Anhui province, will produce polymer metal composite material enough to satisfy the production of five-gigawatt-hour batteries annually, the Xiamen-based company announced late yesterday. The construction of the plant will be completed in phases in a total of 24 months, Guangpu added.

Polymer metal composite material, a new product developed by Guangpu to meet the rising needs of the new energy industry, is a new type of battery current collector material. Batteries using current collectors made of polymer metal composite material are safer, cheaper, and have a higher energy density and a longer lifespan than conventional all-metal current collectors.

Samples of Guangpu's polymer metal composite products which were made by polymer materials such as polypropylene with aluminum or copper foils have received good feedback from various battery manufacturers and carmakers, the company noted, adding that some clients have placed orders for the products. 

Guangpu's first plant producing polymer metal composite material began operations last year, according to the firm's latest annual report.

In yesterday's statement, Guangpu also said that it will invest in and participate in the construction of an energy storage facility project with an annual capacity of 2 GWh in Wuhe. The company did not disclose any further details about this project.

Guangpu's shares [SHE: 300632] closed 0.2 percent up at CNY12.28 (USD1.72) in Shenzhen today, after jumping up nearly 5 percent in early trading.

Editor: Futura Costaglione