(Yicai Global) April 22 -- Shares in Jiangxi Black Cat Carbon Black advanced today after the Chinese producer of the pigment carbon black said it will invest CNY680 million (USD105 million) to branch into new energy materials and construct a factory for carbon nanotube powder, a substance used to improve conductivity in electric car batteries.

Black Cat’s share price [SHE:002068] was trading up 4.98 percent at CNY9.91 (USD1.50) as of 1 p.m. China time today.

The new facility, to be located in Black Cat’s base of Jingdezhen, eastern Jiangxi province, will have an annual output of 5,000 tons when completed in 2026, the company said yesterday. The first stage with a capacity of 500 tons should be ready by the end of the year and the second stage with an output of 2,500 tons should be finished in late 2024.

The project will expand the company’s footprint in new energy materials and be a new driver of growth, it said. Black Cat’s existing resources in carbon black production will give it an advantage in the field, it added.

Carbon nanotubes serve as nano reinforcers due to their unique structure. They are used in a number of industrial applications including as an additive for the cathode and anode materials in lithium-ion batteries. Jiangsu Cnano Technology is the world's largest carbon nanotube supplier.

Editor: Kim Taylor