Strategic partnerships appear to be the order of the day where the global electric vehicle (EV) industry is concerned, with different companies looking into mergers or joint initiatives with their peers to get a more significant slice of the booming market.
One of the most recent discussions involved Sunrise New Energy, a Chinese firm that manufactures graphite anodes for lithium-ion batteries, South Korean company LG Energy Solution, and the Abu Dhabi Investment Fund. As of Tuesday, October 24th, the three parties are looking into a joint partnership regarding a facility for the production of lithium battery materials in Abu Dhabi.
According to officials from Sunrise New Energy, the said facility could produce up to 500,000 tons of anode materials per year for the production of rechargeable batteries for numerous purposes and not just for the EV sector.
Following the announcement, Sunrise New Energy shares traded on the technology-driven Nasdaq index in the United States found their value up by 4% during afternoon trading on the 24th.
Prior to this most recent spate of talks, the Chinese firm was fielding proposals for its products from EV pioneer Tesla just last September.
An Emergent Player
While its shares have been trading for a while on the Nasdaq, very few people outside the renewable power and rechargeable battery industries have ever heard of Sunrise New Energy.
The company presently operates from its headquarters in Zibo in China’s Shandong Province, and its primary business involves research and development of renewable and rechargeable power solutions, on top of manufacturing and selling graphite anodes to the battery production sector.
According to its official website, the company has entered a joint venture with an as-yet-unnamed Chinese company for the construction of a 138,000-square-mile manufacturing facility in Guizhou Province.