(Yicai Global) Dec. 27 -- Shenzhen Desay Battery Technology will build a small and a medium-sized lithium battery assembly line in Changsha in China's central Hunan province to power mobile phones, laptops and other devices.

Its unit Huizhou Desay Battery plans to sign a project investment agreement with the Administrative Committee of Wangcheng Economic and Technological Development Zone in the provincial capital Changsha, the mobile power producer said in a statement yesterday.

The project, which will unfold in two phases, is expected to achieve annual production of about 40 million lithium batteries, with investment of CNY300 million (USD43.5 million) in the first phase. Annual capacity will reach 100 million lithium batteries after the second stage.

Huizhou Desay will set up a wholly-owned local project company tasked with construction and operation, the statement said, adding the firm will first make the products in leased plants in the development zone and get a reserved plant for the second phase and the right to buy the leased plant at cost.

The project will help the firm better meet the needs of its core customers, while the new unit will also enjoy local government industrial preferential policies, the statement added.

Editor: Ben Armour