Investors have rallied behind Israel-based tech play UltraCharge today on news it has signed a deal with a subsidiary of Chinese state-owned, Fortune Global 500 company Sinochem Group.
The Memorandum of Understanding is with Sinochem Lantian, China’s leading fluorine chemical manufacturer, and allows for future commercial production of UltraCharge’s low cost, high performing electrolyte solution.
The company’s Electrolyte IP will enable the production of a superior electrolyte salt (LiFSI salt) which can increase battery lifespan and performance.
Sinochem Lantian is one of the few companies in the world which has the capacity to produce LiFSI salt.
The news saw UltraCharge’s (ASX: UTR) share price soar over 20% to an intraday high of 2.9c.
The partnership with Sinochem Lantian helps UltraCharge to provide a full lithium ion battery solution to the market, with commercial capacity to reproduce its patented electrolyte solutions, targeting the electric vehicle market.
Furthermore, UltraCharge will have opportunities for access and exposure to the Chinese electric vehicle market, which will open up greater market opportunities.
“We are now in a position to offer battery manufacturers a full or tailored solution to enhance performance of lithium ion batteries. For the end user or consumer, this means a longer lifespan, higher voltage, low cost battery solution which is safe”. UltraCharge CEO Kobi Ben-Shabat said.
The news comes after UltraCharge acquired a high performing, low cost electrolyte solution from Coorstek Specialty Chemicals, a US based company.
China has the largest sales of electric vehicles in the world, backed by its government’s policy to be a global leader in cleaner energy driving.
