China Fortune Land Development has pledged to help Nanjing, capital of Jiangsu province, become a bigger player in the new energy automobile industry through a major investment in a large lithium battery-related project.
The real estate and investment group, known as CFLD, brokered a cooperation agreement with the Lishui district government of Nanjing and Shenzhen-based Londian Wason Holdings on Nov 12 in Nanjing.
Londian Wason, which specializes in advanced copper foil materials, will invest 10 billion yuan ($1.52 billion) to build a plant in the district. It will be the company's first manufacturing center for copper foil and lithium batteries in eastern China, helping to improve Nanjing's industrial chain.
It marks a breakthrough in Nanjing developing into a key base of the new energy automobile sector, insiders said.
The deal is another 10 billion-yuan project that CFLD has secured in the battery industry, after the company introduced a 13.5-billion-yuan battery cell and pack project invested in by Shenzhen-based Sunwoda to Lishui district in March 2019.
Copper foil is the first choice for current collectors on lithium batteries' negative electrode. With policy support for new energy vehicles in China and the world, as well as mainstream carmakers' progress in electrification, the growth potential of copper foil for lithium batteries keeps expanding, insiders said.
Londian Wason, which was searching for investment opportunities, identified CFLD in September as a partner for its investment consultation. The latter's industrial service team spent two months helping the former to settle down in the Lishui New Industry City. Londian Wason said it chose Lishui because of its market prospects, industrial advantages and industrial services.
An executive from Londian Wason said CFLD helped it solve problems ranging from market surveys, site location and financing to business registration.
Londian Wason now has more confidence to expand in Lishui and hopes to complete construction of its factories soon and build a research and development and marketing center there.
CFLD signed a public-private partnership agreement with Nanjing Lishui Development Zone for its development in March 2016. The zone focuses on new energy and intelligent connected vehicles and has supporting industries for equipment manufacturing and producer services, the company's website said.
In the zone, CFLD centers on attracting investors to forge a complete industrial chain for new energy automobiles and components. This includes batteries, electric motors and lightweight body materials. A major part of the chain, the first phase of the Sunwoda power battery project, began operating recently.
Zhao Wei, executive president of CFLD, said, "The complete supporting facilities in the Nanjing Lishui Development Zone and Lishui district as a whole are the foundation for a safe industrial chain."
He added that the company will continue to offer tailored services to the Londian Wason project in Lishui. It will also keep attracting quality projects to settle in the zone and develop advanced industrial clusters, Zhao said.
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