(Yicai Global) March 18 -- Senior Technology Material, one of China's leading separator providers for power lithium batteries, has inked a long term strategic supply deal with Swedish' power battery maker Northvolt.
Shares in the supplier [SZE:300568] were up 8.11 percent at CNY29.86 (USD4.26) as of 1.11 p.m. after it revealed the deal today, saying it will invest CNY2 billion (USD285 million) to build plants in Europe to supply Northvolt facilities in Sweden and Germany.
It hopes to open the production lines in 2023, after which they will cater to more than half of Northvolt requirements for separators and major accessories. Senior Technology Material's plant in Changzhou, Jiangsu province, will fill in the void in the meantime.
Founded in 2003, Senior Technology Material boasts severable notable clients, including South Korea's LG. Its separator sales volume jumped 36 percent in the first half of last year to 152.7 million square meters, according to a company financial statement.