(Yicai Global) Nov. 13 -- Guangzhou Great Power Energy & Technology Co. [SHE:300438] will work with a local government in the eastern Chinese province of Jiangsu to build a 10-gigawatt hour (GWh) lithium-ion power battery project and a 5-gigawatt per hour (GWh) lithium-ion power battery pack project there, with investment of over CNY5.8 billion.

The company will sign a cooperative agreement with Jintan Jincheng Technology Industrial Park's management committee affiliated to the local government, per which it will build a lithium-ion power battery and system project within the park, the power battery developer said on Nov. 10 evening.

The project will consist of two phases. Construction on phase one with fixed-asset investment of over CNY2.6 billion, is scheduled to start before next March 31, the announcement said. Upon completion of phase one, the project will have an annual production capacity of 4GWh of lithium-ion power batteries and 3GWh of lithium-ion power battery packs.

The company will spend CNY200 million in cash to establish a wholly-owned subsidiary to help implement the project within one month after the agreement officially takes effect, the announcement said.