(Yicai Global) Dec. 14 -- Yunnan Aluminium Co. [SHE:000807] will invest CNY10.2 million (USD1.5 million) to top up its stake in an aluminum-air cell researcher to 100-percent as it looks to accelerate industrialization of the new battery technology.
The Kunming-based firm will take over Yunnan Metallurgical Group Co.'s 35.4-percent stake and Kunming Metallurgical Research Institute's 30.6-percent holding in Yunnan Metallurgical Group Chuangneng Metal Fuel Cell Co., the buyer said in a statement yesterday evening.
The buyer and sellers are all part of Yunnan Metallurgical Group, so the deal will constitute a connected transaction.
The new power cells, which have use almost-pure aluminum as anode and oxygen as cathodes, only consumer aluminum and a small amount of water. They have a high energy density, are lightweight and non-toxic, and can offer long ranges for new-energy vehicles.
China's NEV market is rising rapidly as the government looks to push for greener transport. As of the end of last month, new-energy car production and sales this year had outstripped those of traditionally-fueled cars.
Yunnan Aluminium, which already holds a 34-percent stake in the target, will use the acquisition to build an industrial system to research aluminum-air batteries and their applications, it said. The firm hopes to extend its deep processing of aluminum products and break into the downstream new materials industry.