Chisen Electric to Launch Lithium Ion Battery Production in New Manufacturing Facility
Chisen Electric Corp. announced that it has signed a series of agreements with local government officials, which provide relocation funding from the government for moving all current production within a year at its oldest plant (Plant A) at Jingyi Road in Changxing County to its nearby (1.5 km) Plant B where the company also has been manufacturing lead-acid batteries since 2008. Additional funds from the local government for compensation of the relocation of Plant A also are being provided for the construction of a new plant, Plant C, roughly 3km away that will be approximately 50% larger than Plant A.
The company reported that the combined operations in Plant B will have the capacity to meet current as well as anticipated future growth needs stemming from strong market demand for its lead-acid motive batteries. Most significantly, Plant C, which is expected to be completed within two years, will house a new business thrust for the company – the production and sale of lithium ion batteries, primarily for powering motors in a variety of vehicles. It is anticipated that the cost of Plant C will be paid for by proceeds of the government compensation it is receiving for the removal of its investment from Plant A as well as direct government stipends for funds advanced by the company.
Xu Kecheng, Chairman and CEO, stated, "We are extremely grateful to the local and regional authorities for helping us consolidate in one convenient location our lead-acid motive battery business, which has seen very rapid growth in recent years as a major supplier to China’s bicycle manufacturers and consumers. Perhaps even more importantly, the way also is now paved for our company to apply its expertise to the launch of lithium ion battery production, which we see as an area with new growth potential."
The company said the new factory will be specifically designed for the production of lithium ion batteries, which are becoming increasingly popular in motor vehicles, consumer electronics, and various industrial applications.
Xu commented, "We believe that our expertise in battery development and production will enable us to rapidly develop and produce superior lithium ion batteries for a variety of products, including automobile motors. China has announced that over the next decade it aims to become the world leader in battery-powered electric vehicles and, for the most part, we believe that lithium-ion batteries, with their high energy density and energy to weight ratios will be the principal power source for the autos, trucks and other electric vehicles being built. We intend to be a major participant in the growth we foresee in this area and envision the development of an important new revenue stream for the company."