(Yicai Global) May 31 -- A subsidiary of Sinoma Science and Technology plans to invest about CNY1.5 billion (USD224 million) in the second phase of a plant that makes lithium battery separators amid increasing demand for such batteries, which are used in electric cars.

The next stage will bring the factory's annual production capacity to 408 million square meters, Beijing-based Sinoma Science said in a statement late yesterday. Construction work is expected to begin in July and operations will start within 23 months.

Sinoma Lithium Battery Separator's plant in Tengzhou, in China's eastern Shandong province, currently has the capacity to turn out 240 million square meters of the component a year. According to the firm's plans, it will have total annual output capacity of one billion square meters in the future.

The added capacity will enable the subsidiary to partner big battery companies at home and abroad, helping it achieve brand awareness and become an important mainstream supplier in the market for middle- and high-end separator products, the statement added.