(Yicai Global) Oct. 20 -- Malion New Materials Co. [SHE:300586] will invest USD7.6 million (CNY50 million) to set up a wholly-owned subsidiary to back and construct a lithium battery wet diaphragm project.
The company's board of directors has passed relevant motions, the polymer composites producer said today.
The scheme plans to purchase two advanced lithium battery wet diaphragm production lines and 10 supporting coating production lines. After the project's completion, the manufacturing base will have the capacity to produce nearly 100 million square meters per year of wet diaphragm base membrane and 80 million square meters per year of coated diaphragms, the company said.
Backed by CNY503.1 million, the facility will be in Shantou city's Jinping district in South China's Guangdong province. Construction will take one to two years. It is estimated that its annual operating income and net profit will reach about CNY440 million and CNY100 million, respectively, after the project is operational, the firm said.
Rapid development in the new energy vehicle and battery industries has driven up demand for lithium battery diaphragms.
Hebei-based Cangzhou Mingzhu Plastic Co. [SHE:002108] said Oct. 10 that it will invest in building a dry-process lithium ion battery separator diaphragm project with an annual output of 50 million square meters through its wholly-owned subsidiary.
China's lithium battery wet diaphragm production was 390 million square meters last year and that number is expected to reach 1.58 billion square meters in 2020, marking a compound annual growth rate of 41.8 percent.