(Yicai) Nov. 20 -- Shares of Senior Technology Material rose after the leading Chinese producer of lithium-ion battery separators said it has allied with a US company to make and sell lithium-ion battery diaphragm products over three years.

Senior Tech [SHE: 300568] closed 3.7 percent higher at CNY12.01 (USD1.67) a share today. The broader Shenzhen market climbed 0.8 percent.

Senior Tech and Sepion Technologies will jointly develop and sell lithium-ion battery diaphragm products in China and the United States from 2026 to 2028, the Shenzhen-based company announced yesterday, citing a deal inked the same day.

Sepion Tech is headquartered in California and develops materials and components for batteries used in electric vehicles and grid-scale energy storage.

Sales are expected to reach about 1.2 billion square meters, Senior Tech noted. The two companies will also aim to expand to other key markets, including Japan, South Korea, and the European Union, it added.

Sepion Tech will develop a new polymer coating material that is thinner, lighter, and drier than conventional ceramic coating, helping to increase the durability of lithium-ion batteries, Senior Tech pointed out.

Senior Tech will provide the battery diaphragm with basic materials and coating technologies, while Sepion Tech will provide polymer coatings and supporting materials, the Chinese firm said.

Senior Tech will make the products and sell them in China, while buying the polymer coating from Sepion Tech and paying related royalties, it noted. In the US market, Sepion Tech will finish the coatings and manage sales after buying the basic materials from Senior Tech, it added, without disclosing any financial details.

The pair also plan to set up a joint venture to produce the coating and carry out the coating process as well as sell the products to clients in specific regions, Senior Tech also said. It did not disclose where the JV plant will be located.

Senior Tech produced 2.6 billion sqm of lithium-ion battery diaphragms last year, with overseas revenue accounting for 15.6 percent of its total, according to the firm’s annual financial report. Its major clients include Contemporary Amperex Technology, LG Energy Solution, Samsung SDI, and Northvolt.

On Nov. 11, Senior Tech said it had inked a deal with the power battery unit of Volkswagen Group to supply about 2.1 billion sqm of separators between next year and 2032. 

Editor: Martin Kadiev