(Yicai Global) May 10 -- Major Chinese engineering firm Sichuan Road & Bridge Co. leads the formation of a CNY800 million (USD125.6 million) joint venture aimed at producing lithium battery materials in western China's Sichuan province.
The JV, made up of four companies, aim to put a factory for the production of 10,000 tons of ternary cathode materials for lithium batteries and 20,000 tons of raw materials into operation by 2020, Sichuan Road & Bridge said in a statement.
The company aims to capitalize on the rapid growth seen in China's NEV sector, which accounted for just under half of all global sales last year. Some 605,500 plug-in passenger cars were sold in China in 2017, presenting vast opportunities for Sichuan Road & Bridge to supply batteries to the sector.
Sichuan Road & Bridge will contribute CNY440 million of the total investment, taking 55 percent of equity, it said, adding that the production facility will be built in Suining, Sichuan province.
The investment is not expected to have a big impact on Sichuan Road & Bridge's current businesses, financial status or bottom line due to the relatively small monetary value.
Editor: William Clegg