FEMTC in Taiwan Tries to Tap Chery's EV Supply Chain: EDN

Taipei, Nov. 3, 2009 (CENS)--Formosa Energy & Material Technology Co. (FEMTC) chairman J.Y. Wang recently visited Chery Automobile in China, trying to tap the automaker's electric vehicle (EV) supply chain, according to Taiwan's Chinese-language economic daily newspaper Economic Daily News (EDN).

Wang said to EDN that visiting Chery was merely to promote the advantages of FEMTC's anode materials for lithium-ion (Li-ion) batteries.

Industry sources say that Chery is China's largest indigenous car brand with annual production volume of about 450,000 vehicles. Chery has been aggressively developing EVs, hence possibly allowing FEMTC to profit considerably if given a chance to supply the battery material.

Industry insiders say that FEMTC's parent group Formosa Plastics Group (FPG) asked executives of Prince Motors in Taiwan, Chery's vehicle-assembly partner on the island, to help access Chery's top people.

FEMTC, a joint venture between FPG and Changes Ascending Enterprise Co., Ltd. in Taiwan, to produce raw materials for lithium iron phosphate batteries. The venture's first factory will start trial production late this year with initial capacity of 1,440 tons, which is expected to rise to 5,200 tons by 2010.

Previous news reports say that FEMTC's anode material is patented in the USA, and the maker is applying for patents in Japan, Korea, Taiwan, China, India, Canada, Russia and Europe.

FEMTC's anode material has been tried by BYD, another carmaker in China, but future development is uncertain for BYD is also developing such material in-house. Meanwhile FEMTC's products have been adopted by ShenZhen BAK Battery Co., Ltd., a top-three battery maker in China.