(Yicai Global) July 2 -- Yunnan Energy New Material, one of the world's largest lithium battery separator makers, will invest CNY2.8 billion (USD408 million) to expand its ongoing project in Wuxi, eastern Jiangsu province, due to growing demand. 

Yunnan Energy New Material will build 24 more production lines of battery separator products, the southwestern Chinese firm said in a statement yesterday, without disclosing the project schedule. 

The company announced the commencement of the project last July, investing CNY2.2 billion to make 16 production lines for separators, and tens for other products. The company expected to finish four production lines this month, and four more by the end of this year, it said in February. 

Yunnan Energy New Material entered the battery separator market after acquiring Shanghai's Energy New Materials Technology in 2017. The unit, whose clients include Contemporary Amperex Technology and BYD, penned a USD617 million deal with South Korea's LG Chem in May to supply the latter with separators.

The parent's stock [SHE: 002812] rose nearly 4 percent to CNY50 (USD7.30) today.

Editor: Emmi Laine