Shanghai (ZXZC)- Zhuhai CosMX Battery Co., Ltd. (“COSMX” or “the company”), a Chinese major supplier of consumer Li-ion batteries, announced its plans to establish a project company in Deyang City, Sichuan Province through its subsidiary Zhejiang CosMX Battery Ltd., in order to invest in the construction of a power battery production project.

The initial phase of the project will involve a total investment of no more than 10.3 billion yuan.

Photo credit: COSMX

According to the investment agreement signed on May 22, 2023, between Zhejiang CosMX, the Management Committee of Deyang High-tech Industrial Development Zone, and Deyang Investment Holding Group Co., Ltd., the project will occupy a total area of 1,360 mu (about 907,000 square meters), with the first phase covering 727 mu (about 485,000 square meters).

The first-phase project plans to construct ten production lines for power and energy storage batteries, with an annual production capacity of 25 GWh once fully operational. After the land is acquired, the construction is expected to begin within six months and be fully completed in 42 months.

COSMX stated that this investment aligns with Zhejiang CosMX's development strategy and will facilitate the expansion of the company power and energy storage battery business. It will also enable COSMX to seize market opportunities, enhance their market competitiveness, and strengthen their overall capabilities.

The funding for this external investment will be derived from the company's own capital or self-raised funds.

Established in 2007 and headquartered in Zhuhai, COSMX is primarily engaged in the research, production, and sales of consumer-grade polymer soft pack lithium-ion batteries. Simultaneously, they continue to strategically expand their presence in the power and energy storage sectors.

In the field of power batteries, COSMX has garnered recognition from renowned domestic and international automobile manufacturers such as General Motors, SAIC Motor, and Jaguar Land Rover in the low-voltage automotive battery segment. They have received designated project notifications for multiple vehicle models.

Regarding energy storage batteries, the company has entered the supply chain systems of well-known domestic and international companies such as ZTE, sonnen, and China Southern Power Grid Technology, and has commenced bulk supplies.