(Yicai Global) May 5 -- China's Yunnan Energy New Materials has received a EUR655 million (USD695.5 million) battery separator order from car parts manufacturer Automotive Cells at its new factory in Hungary.

The lithium battery separator supplier's subsidiary in Hungary penned a purchasing agreement with the Levallois-Perret-headquartered battery cell and module developer, the Yunnan province-based company said in a statement yesterday. The deal will be effective from 2024 to 2030.

ACC is funded by Opel and Alfa Romeo brand owner Stellantis, Mercedes-Benz, as well as oil and gas giant TotalEnergies, according to the announcement. The battery firm is building a pilot production base in France and plans to establish factories in Germany and Italy to reach an annual capacity of at least 120 gigawatts by 2030.

Yunnan Energy started constructing a factory in eastern Hungary's Debrecen in November 2020, expecting it to be ready in the first quarter of 2023. The goal of the expansion is to serve European clients better. The plant should have an annual output of 400 square meters of battery separators.

The latest long-term order failed to boost the Chinese firm's stock price. Yunnan Energy [SHE: 002812] slid 0.5 percent to CNY202 (USD30.60) before the midday break.

Editor: Emmi Laine, Xiao Yi