(Yicai) Sept. 11 -- Nuode New Materials, a Chinese producer of copper foil products, has become the designated supplier of the electric vehicle battery unit of India's largest storage battery maker Exide Industries.

Nuode's subsidiary in Shenzhen will provide CNY200 million (USD28.1 million) worth of copper foil products to Exide Energy Solutions next year, the Changchun-based parent company announced late yesterday, without revealing any further details.

The implementation of the deal will help Nuode establish a long-term and stable partnership with the client, the Chinese firm added.

Copper is the preferred material used in battery to collect and transport electrical currents. The quality of the metal does have a notable impact on the battery performance.

Nuode sold 45,400 tons of copper foil last year, with revenue from this business accounting for 89 percent of the total, according to the company's 2023 earnings report.

However, a copper foil oversupply and rising raw material prices affected product sales in the first half of this year. As a result, Nuode reported a net loss of CNY159 million in the six months ended June 30, compared with a profit of CNY85.7 million (USD12 million) a year earlier. Revenue rose 9.8 percent to CNY2.4 billion (USD337.4 million) in the period.

Chinese and foreign lithium battery producers, such as Contemporary Amperex Technology, BYD, and LG New Energy, are among Nuode's top clients.

Nuode's shares [SHA: 600100] closed 0.6 percent down at CNY4.84 (68 US cents) in Shanghai today. The stock has lost about 78 percent of its value since July 2022.

Editor: Futura Costaglione