(Yicai Global) May 16 -- Lithium-ion battery anode maker Putailai New Energy Technology Co. will set up a processing factory in China's northern Inner Mongolia Autonomous Region to meet the growing demand for its products from the new energy vehicle (NEV) market.
Putailai will set up a new unit with CNY200 million (USD31 million) registered capital in the region to support the project, the Shanghai-based firm said in a statement, adding that it would boost production capacity and optimize their distribution.
China's demand for lithium products is ever increasing as they are integral to the production of NEVs. The country is the world’s largest market for green energy vehicles with some 605,500 plug-in passenger cars sold last year. China accounted for almost half of the global market and grew 30 times faster than the world average, data from industry researcher EV Volumes shows.
Located in Innner Mongolia's Ulanqab municipality, the subsidiary will boast low energy and labor costs, while also creating local jobs, the firm added.
Founded in 2012, Putailai [SHA:603659] went public in Shanghai last year, attracting overwhelming interest from investors, it said. Shares traded at CNY57.5, down 0.36 percent, at the time of writing.
Editors: Emmi Laine, William Clegg