SINGAPORE - A subsidiary of Nanofilm Technologies has entered into a joint venture with two Chinese companies to provide coating solutions for advanced battery components and systems in electric vehicles, as well as energy-storage applications in China.
The joint venture will be named Sichuan Apex Technologies (ApexTech), with an initial registered capital of 50 million yuan (S$10 million).
This will be subscribed in cash and held by the subsidiary, Nanofilm Vacuum Coating (Shanghai), Shenzhen Everwin Precision Technology and Shanghai Hongshi Enterprise Management Partnership, in proportions of 60 per cent, 30 per cent and 10 per cent respectively.
ApexTech aims to develop proprietary coating solutions to replace electroplating, which is "extremely pollutive", Nanofilm said in a statement on Wednesday (Sep 28).
The electroplating industry has come under stringent environmental-protection laws in China and other countries, the group said.
To maximise production and customer synergies with Everwin, ApexTech will set up its production facilities near Everwin's facility in Sichuan province. ApexTech is targeting initial production in the first half of 2023, with pilot lines designed and built in-house by Nanofilm. It plans to reach industrial-scale mass production in 2024.
ApexTech will also leverage Nanofilm's capabilities through the provision of proprietary equipment and technologies for coating development and mass production.
ApexTech's board will include five directors, three to be nominated by Nanofilm Vacuum Coating and two to be nominated by Everwin.
Nanofilm said the proposed investment in the joint venture is not expected to have a material impact on net tangible assets and earnings per share of the group for the financial year ending Dec 31, 2022.
Based on figures from the International Energy Agency (IEA) and Nanofilm's internal estimates, the total addressable market of advanced batteries for electric vehicles in China exceeds 6.5 million units, estimated to be worth US$79 billion in 2023.
It is projected to grow at a compounded annual growth rate of 10 per cent to reach US$156 billion in 2030.
IEA estimates electric vehicle penetration in China to reach 42 per cent in 2030, up from 14 per cent in end-2021.
Nanofilm shares ended Wednesday down 2.3 per cent at $2.08. THE BUSINESS TIMES
