Shanghai (ZXZC)- CATL has agreed with Yunnan Energy New Material Co.,Ltd. (“ENERGY TECHNOLOGY”), a Chinese manufacturer of paper packaging materials, to co-build a limited liability platform venture focusing on the investment in the projects of dry-/wet-process separators, ENERGY TECHNOLOGY announced on Nov. 10.

Photo credit: CATL

Per the agreement, the yet-to-be-launched platform joint venture will involve a registered capital of 1.5 billion yuan ($234.234 million) and a total investment of 8 billion yuan ($1.25 billion). Upon completion of the capital increase, the joint venture will be 51% and 49% held by ENERGY TECHNOLOGY and CATL respectively.

The platform firm will invest in and set up a wholly-owned subsidiary for wet-process separator projects with a planned capacity of 1.6 billion square meters per year. Besides, it will also join hands with Jiangxi Enbo New Materials Co., Ltd., a sub-subsidiary of ENERGY TECHNOLOGY, to establish a joint venture dedicated to dry-process separator projects with a designed annual capacity of 2 billion square meters.

Moreover, per the agreement, within 5 years after signing the agreement, ENERGY TECHNOLOGY’s subsidiaries should offer CATL its wet-process separators with priority. Correspondingly, the Ningde-based battery giant should prioritize ENERGY TECHNOLOGY’s subsidiaries when procuring such products.

ENERGY TECHNOLOGY is a global leader in lithium-ion battery separator film, with diversified product portfolios ranging from cigarette label, BOPP film, aseptic packaging to special paper.