Shanghai (ZXZC)- On May 22, Gotion High-Tech, a leading automotive lithium-ion power battery supplier in China, celebrated the foundation stone-laying ceremony for its lithium-ion battery project in Yichun, Jiangxi province, which is scheduled to go into operation at the end of 2022.

Photo credit: Gotion High-Tech

Guoxuan Holdings Group Co.,Ltd., a related firm of Gotion High-Tech, entered into a strategic partnership with the People's Government of Yichun on February 28. Under the agreement, Guoxuan Holdings will invest 11.5 billion yuan ($1.786 billion) into a new energy industrial project in Yichun Economic & Technological Development Zone. The project encompasses such businesses as the exploitation of mine resources, the extraction of lithium carbonate, the R&D and manufacturing of lithium batteries, as well as the development of energy storage system.

According to the planning, the Yichun-based project will be built in two phases, which are set to be operational at the end of 2022 and 2025 respectively, and is expected to generate production value of around 20 billion yuan ($3.106 billion) per year.

To support the operation of the new project, Gotion High-Tech last month founded a wholly-owned subsidiary, named Jiangxi Guoxuan New Energy Technology Co.,Ltd. (Jiangxi Guoxuan), with its own funds. The company announced on May 7 it had complete the commerce registration and obtained the business license for Jiangxi Guoxuan, which will launch several subsidiaries in Yichun to carry out the aforementioned businesses included in the project.

Gotion High-Tech achieved annual revenue of 6.724 billion yuan (around $1.04 billion) for 2020, up 35.6% from the previous year. Of those, 6.277 billion yuan ($974.932 million) were contributed by the power lithium battery business arm, representing a year-on-year growth of 45.27%. Annual net profit attributable to the parent reached 150 million yuan (around $23.1 million), soaring 192.02% year over year, the largest increase since the firm was listed.