Zhuhai Energy New Materials Technology will invest 1.1 billion yuan ($164 million) in four imported automatic assembly lines for lithium-ion battery separators in the Gaolan Port Economic Zone.

The company expects to generate 1.5 billion yuan ($223 million) in annual output value from the Phase 2 project. Phase I cost 2.7 billion yuan ($402 million). The combined annual output value of the two phases is estimated at 5 billion yuan ($745 million).

Parent company Shanghai Energy New Materials Technology (Semcorp) announced the expansion on March 15. The new production lines will employ an advanced wet-laying technique while another 12 coating film production lines utilize Semcorp proprietary intellectual property rights. There will also be slitting machines on the 6.4-hectare (15.8-acre) site.

The separator, along with electrode materials and electrolytes, is an important part of lithium-ion batteries and can directly influence battery performance.

"Power Your Future" is the Semcorp motto [Photo by Kang Zhenhua / Zhuhai Daily]

Phase I became operative last year with 12 production lines capable of producing 1 billion sq m of basement membrane and 40 to put out 800 sq m of coating film yearly.

The Zhuhai subsidiary was incorporated in 2016 in response to the growing market for new-energy vehicles. It specializes in technology development, technical consultation, technology transfer, technical service, and manufacturing and sales of lithium battery separators and coating film.

In 2018, the Gaolan Port Economic Zone accumulated 201.1 billion yuan ($30 billion) in production value from a new-material industry cluster composed mainly of power lithium battery materials and functional polymers. It showed an increase of 16.4 percent.

The separator project will help realize the long-term goal of creating a national-level new-material industrial base within five years, according to a Gaolan official.