(Yicai Global) March 29 -- Sunward Intelligent Equipment will invest CNY5 billion (USD762 million) in a production line for anode materials used in electric vehicle batteries as the Chinese construction machinery maker makes a move into the upstream supply chain of the lucrative new energy vehicle sector.

The new plant, which will be located in southwestern Guizhou province, should generate revenue of between CNY3 billion (USD457 million) and CNY4 billion a year, the firm said yesterday. The first phase will produce around 50,000 tons of anode materials a year and the second phase a further 50,000 tons of anode materials and high purity graphite each year.

Changsha, central Hunan province-based Sunward Intelligent started to branch out into new energy materials with the acquisition of Hunan Bobang Shanhe New Material last September. Once the new factory is up and running, it could become a major player in the lithium-ion battery supply chain

Sunward Intelligent’s share price [SHE:002097] closed up 1.87 percent today at CNY9.24 (USD1.41).

Editor: Kim Taylor