Potrans Electrical to make powerful lithium batteries

Taipei, Aug. 5, 2005 (CENS)--Potrans Electrical Corp. (PEC) plans to make high-power lithium batteries as part of its plan to boost earnings.

Li batteries have become valuable since the European Union has announced that it will prohibit lead-based and cadmium-based products from entering its 25 member states soon because of the poisonous nature of the two metals. Besides, Li batteries are more durable and lighter as compared with lead and cadmium batteries.

The company, which has specialized in re-chargers, is raising NT$400 million (US$12.9 million at US$1:NT$31) for its first production line, which is scheduled to be opened by the end of this year. Potrans¡¦s chairman, D.H.Tung, estimated a production line of the battery would cost at least NT$120 million (US$3.8 million). He said many venture capital firms and battery manufacturers have expressed interest in investing in the project.

Tung said his company has developed positive-electrode material, the crucial technology for making the powerful LiFe-PO4 batteries and completed layout of the battery. Volume production will begin in the first half next year. The company¡¦s batteries, he added, will target electricity-powered bicycles and scooters as well as powered tools. Once it begins the production, it will become first Taiwanese supplier of this type of batteries.

The company's first production is planned to turn out 200,000 metric tons of positive electrode material, which will be sufficient enough for making 1.55 million batteries a month and allow the firm to have net income of NT$300 million (US$9.6 million) a month. The company has suffered losses over the past three years.

So far, Valence of the United Sates is the only supplier of the powerful Li batteries. Power-tool supplier Black and Decker has booked all of Valence¡¦s output capacity, sending Valence¡¦s share price surging up to US$5 per share from barely US$1.