Shares of Tongxing Environmental Protection Technology hit their daily trading limit after the Chinese waste management company announced plans to invest 3.2 billion yuan ($449.5 million) in two factories dedicated to sodium-ion batteries and cathode materials.
As of 1:40 p.m. in Shenzhen, the company’s stock climbed by 10% to 22.15 yuan ($3.11) per share. The company will allocate 1.2 billion yuan to develop a sodium-ion battery facility with an annual capacity of 6 gigawatt-hours, along with 2 billion yuan for a cathode materials plant capable of producing 100,000 tons annually in Pingshan County, located in southwestern Sichuan Province. The announcement was made late yesterday, referencing a recent agreement with local officials.
This strategic move aims to accelerate the production capacity of sodium-ion batteries and their raw materials, opening new avenues for business growth and supporting the company’s ongoing transformation.
Founded in 2022, the company has begun pilot production of sodium-ion cathode materials and cells, highlighting its focus on this emerging tech in its first-half financial report. Its cathode materials are noted for strong energy density and other performance benefits. The firm mainly targets low-speed electric vehicles and energy storage applications with its battery products.
Though sodium-ion batteries currently have lower energy storage capacity compared to lithium-ion batteries, they are less expensive to manufacture because their main electrode materials are sodium salts. Additionally, sodium-ion batteries are recognized for improved safety and better performance at low temperatures, making them an increasingly attractive investment in China’s expanding battery industry.