Zhejiang Unifull Industrial Fibre Co Ltd, a Chinese lithium batteries manufacturer, said its subsidiary has signed a strategic cooperation framework agreement with one nationally owned aerospace company to make lithium batteries.
Unifull’s unit, Jiangsu ZhiHang New Energy (ZHNE), a Chinese high-tech company designs and produces lithium battery products, will work with a research institution of China Aerospace Science and Technology Corporation (CASC) to develop automotive battery systems for the market.
In the joint development, CASC will be responsible for the production of battery packs and battery management systems, whilst ZHNE manufactures lithium-ion batteries.
This two-year agreement aims to establish the purchase-supply relationship between the companies, which eye on the applications in terms of industry, agriculture, traffic, transportation, and national defence.
Unifull said combining CASC’s solid scientific research strength and technological reserve with ZHNE’s financial asset and market influence is building a “benign” model of the military-civilian businesses integration.
However, there are concerns warning the industry the overcapacity of automotive battery may led to a sharp drop in price, while the new energy vehicles policy of the Chinese government falls short.