FPG Partners With Changes Ascending Ent. on Li Battery Biz

Taipei, Sept. 24, 2008 (CENS)--The Formosa Plastic Group (FPG), the largest petrochemical conglomerate in Taiwan, is actively developing LiFePO4 battery business and trying to apply such advanced cells to future vehicles, according to local Chinese-language economic daily newspaper Economic Daily News (EDN).

According to the EDN, Formosa Entergy & Material Technology Co., Ltd., a LiFePO4 material and battery-pack manufacturing joint venture between FPG (51%) and Changes Ascending Enterprise Co., Ltd. (49%), will soon complete building a new factory on the Formosa Chemicals & Fiber Corp. site, with the joint venture capitalized at NT$350 million (US$11.48 million).

Formosa Energy plans to cooperate with major suppliers as Sanyo, Sony, Sharp of Japan for ample supply of core materials for the lithium cells.

Ranking officials, including heads of Industrial Development Bureau (IDB), Bureau of Energy (BOE), Bureau of Standards, Metrology and Inspection (BSMI) under the Ministry of Economic Affairs, recently visited Change Ascending to better understand the technological development of the LiFePO4 battery. The officials also test-rode different electric vehicles powered by the LiFePO4 cells, impressed by their considerable power.

Changes Ascending, which focuses on development and production of LiFePO4 battery and terminal materials, poured NT$430 million (US$14.1 million at US$1: NT$30.5) into building a new factory in Central Taiwan Science Park (CTSP), which is expected to be completed in October this year to develop, produce LiFePO4 battery materials for mainly vehicular applications.

Changes Ascending has successfully developed key materials for the LiFePO4 battery, making it one of the very few players in the hot business. Chairman S.Y. Lee claims that her company has begun mass production of LiFePO4 battery materials at its old plant in Taichung Industrial Park with a monthly capacity of 480 tons. The company's products are especially suitable for high-current lithium-ion batteries for electric cars/scooters, electric bicycles, power tools, solar-cell system battery, UPS system battery etc.

The company's strong technical capability has drawn many local conglomerates' attention. Currently, the Yulon Group, the largest automobile-manufacturing conglomerate in Taiwan, has a 5% stake in Changes Ascending, while FPG 11%.

Formosa Energy is scheduled to begin mass production in the second quarter of 2009 with a planned annual capacity of around 4,800 tons of LiFePO4 battery material, or about 90% of the global supply.