Shanghai (ZXZC)- Chinese lithium battery materials supplier Ningbo Shanshan Co., Ltd. (“Shanshan”) intends to raise 6 billion yuan ($830.921 million) through a non-public stock issuance to expand its production capacity of lithium ion battery anode materials, according to a scheme released by the company on Oct. 18.

Of the proceeds from the non-public share issuance, 4.2 billion yuan ($581.645 million) will be poured in building an integrated base of lithium ion battery anode materials (first phase) in Kunming city, Yunnan province. The project will be managed by Yunan Shanshan New Materials Co., Ltd., a subsidiary indirectly majority-owned by Shanshan.

Photo credit: Shanshan

Covering an area of around 937.7mu (625,130 square meters), the first-phase project features a designed annual production capacity of 200,000-tonne anode materials, accounting for two thirds of the entire project's capacity.

On the new base, the company plans to build a battery anode material production line that integrates raw materials processing, low-temperature nature modification, graphitization, carbonization, finished product processing, and other processes.

The company said the substantial investment is mainly made to improve its self-service capability of graphitization, so as to further reduce cost and lift operating efficiency.

The other 1.8 billion yuan ($249.276 million) worth of proceeds will be used to supplement working capital.