Feb.20, China – Zhongke Electric announced that it intends to increase the subsidiary Zhongke Xingcheng Graphite Co., Ltd.’(“Zhongke Xingcheng”) s capital and shares, while introducing a 35% stake in CATL to jointly build a 100000 tons of lithium battery anode material integration project in Gui’an New District, Guizhou.
Details of this cooperation between Zhongke Electric and CATL
Firstly, Zhongke Xingcheng will increase its capital by RMB 420 million and CATL or its wholly-owned subsidiary will increase its capital by RMB 280 million to Zhongke Xingcheng in Gui’an New Area.
On the basis of this capital increase, Zhongke Xingcheng of Gui’an New Area will invest in the construction of “100,000 tons per year lithium battery anode material integration project”, which will be divided into two phases, with 65,000 tons capacity to be built in the first phase and 35,000 tons capacity to be built in the second phase. After the joint investment of both parties in Gui’an New Area Zhongke Xingcheng and the completion and operation of the anode expansion project, CATL will enjoy the priority procurement right for the capacity of the anode expansion project and will guarantee the supply of graphitized anode products of CATL on a priority basis.
At the same time, the board of directors of Zhongke Xingcheng of Gui’an New Area shall consist of three directors, among which CATL shall have the right to appoint one director and Zhongke Xingcheng shall have the right to appoint two directors, and the chairman shall be a director appointed by Zhongke Xingcheng.
The significant of the cooperation
Zhongke Electric announced that its subsidiary, Gui’an New District Zhongke Xingcheng Graphite Co., Ltd., has increased its capital and shares and reached a cooperation agreement with CATL, which is conducive to deepening the cooperation between the company and downstream manufacturers in the field of lithium battery, integrating the advantageous resources of both sides and achieving win-win cooperation.
Meanwhile, the cooperation can also provide financial support for the expansion of Zhongke Xingcheng’s lithium anode business, accelerate the expansion of production capacity, guarantee the company’s capacity utilisation rate, and help the company adapt to the new energy Lithium-ion battery industry market competition and rapid development, in line with the company’s development strategy and long-term planning.
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