Nanofilm Technologies International has formed a joint venture with two partners to tap the growing market for newer generations of batteries, especially those used in electric vehicles.
While the joint venture is focused on China for now, the partners have plans to eventually go international.
The two partners are Shenzhen Everwin Precision Technology and Shanghai Hongshi Enterprise Management Partnership.
These two partners will hold 30 and 10% of the joint venture, with Nanofilm taking 60%.
The joint venture, Sichuan Apex Technologies and will have an initial capital of RMB50 million. It will be a full-fledged coating solutions company with technical, production and sales capabilities.
To maximise production and customer synergies with Everwin, ApexTech will set up its production facilities close to Everwin’s facility in Zigong, Sichuan. Nanofilm's existing facilities in China are mainly in the Shanghai region.
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ApexTech is targeting initial production in the first half of 2023 and to scale up for mass production in 2024.
“The JV highlights our growth strategy in two strategic areas – the first is entering new segments with capability and product expansion, and the second is JVs and M&As,” says Nanofilm’s CEO Gary Ho.
“The JV exemplifies how we can work with a strategic partner like Everwin to derive synergistic benefits in terms of technology development and market access into the growing electric vehicle and energy storage market,” he adds.
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According to Nanofilm, citing the International Energy Agency, the total addressable market of advanced batteries for electric vehicles in China is estimated to be above 6.5 million units, amounting to US$79 billion in 2023. This market is projected to grow at CAGR of 10% to reach US$156 billion in 2030.
“Our solutions have vast potential applications with the capability to replace the current environmentally damaging electroplating process,” says Ho.
“ApexTech will allow certain advanced battery components that were previously electroplated, to now be coated with our advanced materials at cost competitive levels.
“It will be a new showcase of our commitment to develop solutions for sustainability issues and the application of our coating technology in a new domain,” he adds.
Nanofilm’s shares closed at $2.08 on Sept 28, down 2.35% for the day and down 44.97% year to date.
