(Yicai Global) April 21 -- Shandong Shida Shenghua Chemical Group plans to invest CNY725 million (USD102 million) to build a plant making chemical components of electrolytes for lithium power batteries.
The factory will be able to produce 5,000 tons of chemicals a year, the firm said in a statement yesterday. It hopes to complete the plant in two years and make 12 types of chemicals found in lithium battery electrolytes, including 1,200 tons of lithium fluoride and 300 tons of lithium difluorophosphate each year.
Investors appeared unenthused as the firm’s share price [SHA:603026] opened flat and fell throughout most of the day, sliding faster than the Shanghai benchmark close at CNY27.82 (USD3.93) down 3.07 percent.
Shida Shenghua already has a reputation as a high-quality supplier of raw materials for lithium-ion battery electrolytes at home and abroad. It revealed in March last year that it was paying CNY170 million for a 51 percent share of a new Polish joint venture it would set up with a local partner to make electrolyte materials amid rising demand for electric vehicles in Europe.
The group, which was set up by the China University of Petroleum East China, will set up a subsidiary to build and run the factory, it said.
Editor: James Boynton