(Yicai Global) March 22 -- Jiangmen Kanhoo Industry will invest CNY3 billion (USD447 million) to build a lithium battery industrial park to manufacture equipment to produce lithium batteries and related cathode materials.
Kanhoo Industry penned an agreement of intent with the Jiangsu Liyang Economic Development Zone Administrative Committee yesterday, the company said in a statement the same day.
Covering 400 mu (27 acres), the industrial park will expand the capacity of Kanhoo Industry's existing businesses, it said, but offered no further details.
The lithium battery cathode material and rare earth luminescent material supplier headquartered in South China's Guangdong province will enjoy preferential taxes and land prices during its operating period, it added.
Founded in 1994, and active in the cathode material sector since 2012, Kanhoo Industry's major products include lithium nickel manganese cobalt oxide used in power lithium batteries and lithium cobalt oxide applied in consumer lithium batteries.
China's major power lithium battery makers cluster in the east of the country. Kanhoo Industry will thus be to easily access downstream customers, reduce product transport costs, and coordinate with downstream capacity by locating in Liyang, which lies within the core area of the Yangtze River Delta, the statement explained.
The company will also purchase two suppliers of lithium-ion battery automated production equipment for cash and by issuing stocks, it announced earlier this month.
Editor: Ben Armour