Universal Group and Oerlikon Capital produce lithium battery for electric vehicles

Oerlikon Capital announced that it will jointly invest with Huanyu Group to establish Beijing Universal Solar Energy Technology Co., Ltd. According to the terms of the investment transaction, Oerlikon Capital will become the second largest shareholder of Universal Electronics after completing the investment, and Huanyu Group will transfer its lithium-ion battery business and related assets to Universal Electronics.

Ou Rui Capital CEO Ke Ruisi said that at present, China, the United States and Europe have gradually begun to use lithium-ion battery technology for the commercial development of electric and hybrid vehicles, this market in the coming years there is a huge opportunity for development.

Universal Xaar is a joint venture of the original Yuanyu Group's Lithium Division after being spun off from the Group and funded by Euro Capital, aiming to provide lithium-ion batteries and related materials for China's booming electric vehicle market. Huanyu Group is currently one of the largest private secondary battery manufacturers in China.

Industry sources believe that the market for Universal Electronics products will grow dramatically in the future given the government’s strong support for reducing emissions, developing new energy vehicles, and the growing demand for electricity and hybrid vehicles in China and the global market.

The data shows that in 2009 China has surpassed the United States as the world's largest automotive market with sales of 13.6 million units. While the demand continues to increase, the Chinese government has adopted a number of policies to promote the development of China's auto industry, including favorable policies aimed at stimulating the emerging markets of electric vehicles.

In early 2009, the National Development and Reform Commission proposed the goal of forming 500,000 new-energy vehicles, such as pure electric vehicles and hybrid vehicles, in 2011. The Ministry of Industry and Information Technology of the People's Republic of China has recently drafted the “Energy-saving and New Energy Vehicle Development Plan (2011-2020)”. The plan proposes that the target of industrialization and market size of new energy vehicles by 2020 will reach the top in the world, among which new energy vehicles (insert Electric hybrid vehicles, pure electric vehicles, hydrogen fuel cell vehicles, etc.) The number of vehicles reached 5 million; in the next 10 years, the government will invest hundreds of billions of funds to support the development of new energy vehicles.

It is reported that in the future, Universal Electronics will implement a two-way business strategy. On the one hand, it will provide third-party battery manufacturers with cathodes and graphite materials for the manufacture of lithium-ion battery products. On the other hand, it will provide system integrators and automotive manufacturers with hybrid and pure electric vehicles. The complete battery equipment. Based on the strong demand of existing customers, Universal Electronics plans to increase its daily output and reach a total capacity of 500,000 ampere-hours/day at the end of 2010.

Oerlikon Capital is a private equity investment company listed on the London Stock Exchange's AIM. It provides shareholders with investment opportunities and private equity investment income in the potentially huge Chinese market. Oerlikon Capital's business model is to privately fund companies in the growth phase. Equity investment to obtain capital gains and provide consultancy services related to further financing, mergers and acquisitions and strategic development. In March 2008, it signed a memorandum of understanding with the world-renowned Gaolei Hedge Fund to jointly develop asset management and consulting business opportunities in China, India and other markets. Currently, Oerlikon Capital's portfolio companies cover a wide range of industries, including metals and minerals, agriculture, renewable energy/clean technologies, and TMT (Technology, Telecommunications, and Media).

Huanyu Group was established in 1982 and is headquartered in Xinxiang City, Henan Province, Central China. Huanyu Group offers a range of battery and electric energy storage products, including nickel metal hydride, nickel cadmium and lithium batteries, including high-end lithium-ion batteries and related materials. These products can be widely used in electrical energy reserves, electric motorcycles, electric cars and various tools.