(Yicai Global) May 5 -- Putailai New Energy Technology, a Chinese battery materials supplier, has revealed plans to spend as much as SEK15.7 billion (USD1.5 billion) to build Europe’s largest anode production base in Sweden.

The new plant will have an annual output capacity of 50,000 tons of lithium-ion anode materials by 2025 and 100,000 tons by the end of 2026 or early 2027, Putailai said yesterday. It will also have a research and development center, the Shanghai-based firm added.

Putailai will fund 30 percent of the project itself and take out loans for the rest, the company said, adding that it has already made preliminary arrangements with Chinese and foreign banks and other financial institutions. As of the end of March, Putailai had CNY5.5 billion (USD793.6 million) on hand, so there is some financing risk.

Putailai said it intends to actively seize market opportunities in the construction of the lithium battery industry chain in overseas markets such as Europe, form long-term cooperation with downstream clients, and tap into Sweden’s power resources, clean energy, transportation, and industrial policies.

Founded in 2012, Putailai mainly develops high-performance film materials, lithium-ion batteries, battery materials, and special equipment. It went public in Shanghai in November 2017.

Shares of Putailai [SHA: 603659] closed 0.8 percent lower at CNY50.61 (USD7.31) today, after opening up 0.9 percent and then falling by as much 2.5 percent in the morning trading session. The wider Shanghai market fell 0.5 percent.

Editor: Futura Costaglione