Chinese electric equipment manufacturer Nuode Investment [600110:CH] has announced plans to raise RMB2.3bn (USD360.4m) via private placement to fund the expansion of its copper foil production business amid a rise in demand for lithium-ion batteries across the Mainland, as reported by Yicai Global on June 8. Nuode’s controlling shareholder Bangmin Industrial Holding and two of its units will purchase the equipment manufacturer’s new shares. The deal will increase Bangmin’s stake in Nuode to 29.83%, up from the current 12.75%. Nuode plans to use RMB950m (USD148.9m) of the new funds to invest in a new ultra-thin copper foils production line in Qinghai province with an annual output of 15,000 tons. The remainder of the proceeds will be used to replenish Nuode’s working capital.
The move comes as demand for lithium and related products rises across the Mainland amid a boom in the county’s EV market. Nuode has recently also announced plans to invest RMB1bn to build an ultra-thin copper foils production line in Huizhou city in Guangdong that will have an annual production capacity of 12,000 tons. Meanwhile, RMB800m of the funds for the new plant will come from third-party sources. Founded in 1987, Nuode Investment specializes in the manufacturing and distribution of new materials, new energy products, and electronic information materials among others. The firm is one of the few Chinese companies with a capacity to produce copper foils less than six micrometers thin, which is used to improve battery energy density and increase the range of EVs.