(Yicai Global) May 29 -- Chinese auto giant SAIC Motor plans to raise its investment in Qingtao Kunshan Energy Development, a Chinese solid-state battery startup, to hasten its positioning in the market and gain a leading position in the technological development of new energy vehicles.

Two of SAIC’s investment funds will inject CNY2.7 billion (USD382 million) into Qingtao Energy, raising the carmaker’s stake to about 15.3 percent from 4.2 percent, Shanghai-based SAIC said in after hours on May 26.

Founded in 2016, Kunshan-based Qingtao Energy has started mass production and is technologically independent in terms of key raw materials, production processes, and customized equipment. Its investors include BAIC Group and GAC Group, according to its website.

SAIC has already poured CNY283.5 million (USD40 million) into Qingtao Energy. The pair also set up a joint venture lab for solid-state batteries to speed up the mass production and use of such batteries in vehicles and develop related raw materials, battery cells, and systems, SAIC added.

The use of solid electrodes and electrolytes in solid-state batteries greatly enhance the energy density of lithium batteries, and enables them to be smaller and safer. But the development and application of solid-state batteries is only at the initial stage.

SAIC’s shares [SHA: 600104] ended 2.1 percent higher at CNY13.48 (USD1.91) today.

Editor: Futura Costaglione