PHET to Supply C-LiFePO4 Cells to Chinese E-bus Makers

Taipei, July 13, 2011 (CENS)--Pihsiang Machinery Manufacturing Co., Ltd. (PMMC) of Taiwan recently announced that its reinvested Pihsiang Energy Technology Co., Ltd. (PHET), a C-LiFePO4 lithium-ion cell maker, will likely win power-cell orders from at least three Chinese bus makers this year.

PMMC is one of the world's largest makers of electric scooters for handicapped people as well as assembled electric vehicles including e-bikes, e-scooters, and e-cars.

PHET has sent its C-LiFePO4 power cells to electric-bus makers in China for final-stage certifications, and will gradually expand shipments from the third quarter. PHET's existing annual capacity is about 15 million cells, and is expected to turn profitable this year if the production lines can go full capacity.

In addition to potential Chinese customers, said Jenny Wu, general manager of PMMC, PHET has signed agreements with vehicle makers in Europe and Japan to supply batteries and integrated power-management/propulsion systems.

According to Jenny Wu, the wife of PMMC and PHET chairman Donald Wu, PHET's battery production capacity will face a serious shortage in the near future, so has asked the Ministry of Economic Affairs to find three hectares in Tongluo Township, Miaoli County in northern Taiwan to expand.

Institutional investors said that each electric bus typically uses 40,000 to 50,000 power cells, and each of the potential Chinese customers could need annually power cells for about 1,000 e-buses, with PHET able to supply currently 300 to 400 e-buses per year.

In addition, the investors said, the Chinese central government has announced ambitious electric-vehicle development and promotion projects, which will create more opportunities for Taiwanese players.