Shenzhen-listed lithium battery supplier Yunnan Energy New Material (Enjie) has announced it will build a lithium battery separator project in Malaysia.

With a total investment planned at CNY 2 billion ($283 million), the project is estimated to have a production capacity of 10 billion square metres/year. The specific site location has not been released yet. 

The company says it will establish a subsidiary in Malaysia to implement the project, Kallanish learns.

“This overseas investment is in line with the company’s development strategy and long-term planning. It will further promote the smooth progress of its overseas business, continue to strengthen its market leadership in the field of lithium battery separators, and is of great strategic significance to its improvement of its global industrial layout,” Enjie comments.

It remains unclear who the potential clients for the project would be. The company has not immediately responded to Kallanish’s enquiry.

Yet, its battery customer Eve Energy just announced a battery manufacturing expansion in Malaysia. 

Enjie is continuously expanding its overseas business. In the first half of this year, its revenue from its overseas business accounted for 20.04% of its total revenue – an increase of 1.96 percentage points year-on-year.

In terms of profitability, the gross profit margin in overseas markets is also higher than in China. In H1, the company’s gross profit margin in overseas regions was 39.89%, while the gross profit margins in East China, Southwest China, and Central and South China were only 20.66%, 12.59%, and 14.73%, respectively.

Enjie’s clients include South Korea’s LG Energy Solution, Japan’s Panasonic, US’ Ultium, France’s ACC, Sweden’s Northvolt and India’s Exide Energy Solutions. Its Chinese clients include CATL, CALB, Gotion High-tech, BYD, and Sunwoda.