Hong Kong-based metals and minerals investment firm Honbridge has acquired Shandong New Energy, a Chinese lithium battery manufacturer.
The acquistion was enacted via the purchase of 90.68% equity interest in Shandong New Energy’s holding company Triumphant Glory Investment. The consideration was HK$634.76m ($81.8m).
Shandong started mass production in 2013 and has a present production capacity of 150,000kWh of lithium iron phosphate batteries or 225,000kWh of ternary lithium batteries per year.
According to Shandong, the company has received purchase orders for about 12,000 battery power packs for this year. Most of the battery packs are currently sold to its customer Zhejiang Kandi, a producer of electric and hybrid vehicles.
Honbridge has been continuously looking for investment and cooperation opportunities in the resources and new energy sector due to an increasing demand for electric vehicles in China, it said in a statement.
