In the interview, Mr. Fu commented that China Sun is expanding production capacity and holding acquisition talks, in anticipation of a doubling of demand due to China’s goal to build one million electric vehicles by 2015, and the Company is also planning to launch production of electric-car batteries by 2013.
"China Sun Group will increase its number of production lines from three to five and raise annual output capacity of lithium iron phosphate by 67 percent to 1,000 metric tons by December 2011. The Company is seeking acquisition opportunities among its suppliers, to move upwards along the value chain. China Sun Group also plans to invest 320 million Yuan ($49 million), about the same value as its current market capitalization, in this investment and expansion for the production of lithium iron phosphate batteries, which will be used in electric cars by 2013," Mr. Fu continued.
"Lithium iron phosphate, which comprises about one third of the Company’s sales today, will be more demanded as Chinese consumption of battery materials used in electric cars at least doubles in 2011," Mr. Fu said. "China Sun is targeting growth from the China domestic market, the world’s largest automobile market. China is promoting the use of electric vehicles and aims to have produced its one-millionth electric vehicle by 2015," continued Mr. Fu.
China Sun Group High-Tech Co. ("China Sun Group") produces anode materials used in lithium ion batteries. Through its wholly-owned operating subsidiary, Dalian Xinyang High-Tech Development Co. Ltd ("DLX"), the Company primarily produces cobaltosic oxide and lithium cobalt oxide. According to the China Battery Industry Association, DLX has the second largest cobalt series production capacity in the People’s Republic of China.
Through its research and development division, DLX owns a proprietary series of nanometer technologies that supply state-of-the-art components for advanced lithium ion batteries. Leveraging its state-of-the-art technology, high-quality product line and scalable production capacity, the Company has recently diversified into the manufacture of LIP and plans to forward integrate to manufacture of power Li-ion batteries.