(Yicai Global) Oct. 19 -- The China-Germany Equipment Manufacturing Industrial Park in Shenyang in Liaoning province will host a Metalfoam new material project that may lead to lighter new energy vehicles that can go further on a single charge.

Parties signed an agreement on the scheme in the industrial complex yesterday, China News Service reported. Using Metalfoam instead of steel when making battery shells can lower weight. The fire-proof and radiation-proof material also has high speed railway, construction and container applications.

China has had great capacity for producing new energy vehicles, but is still weak in core component technology, said Chen Lihe, who heads the project. Batteries used in domestic NEVs are heavy, which limits range, Chen said.

Many research institutes and manufacturing enterprises are willing to work with Chinese enterprises to resolve matters on battery life and charging convenience and to make new energy vehicle explosion and radiation proof, a German insider said at the signing ceremony.

The State Council of China approved the setup of the China-Germany Equipment Manufacturing Industrial Park in 2015. It has carried out 279 projects backed by USD17.87 billion (CNY118.46 billion). German auto giant Bayerische Motoren Werke AG has invested USD426.6 million (EUR3690 million) to build an assembly plant, an engine plant and a research center there.