PVTIME - On July 31, GCL Energy Technology Co., Ltd. (GCL-ET)(002015.SZ), disclosed an intention on increasing the capital of a joint venture in Sichuan Province of China with 400 million yuan.
According to the announcement, GCL hengneng, a holding subsidiary of GCL-ET the A-share company, and Beijing Dongfang Taifeng Import and Export Trade Co., Ltd., a limited partner, invested and established Sichuan Hengxin, the target company, on September 2021. in order to enhance the overall operating strength of the company, and to increase its influence in the lithium battery industry, the two sides plan to increase the capital of the Sichuan joint venture by 400 million yuan each with their own funds. Then the registered capital of Sichuan company will be increased from 800 million yuan to 1.6 billion yuan.
Based on its development strategy, GCL-ET plans to extend to raw material lithium the upstream of mobile energy industry, such as lithium ore and battery material related business. And the investment is expected to boost the company by effectively integrating resources, reducing the costs of raw materials for mobile energy, and enhancing the core competitiveness of the company in the industry.