Dec 3 2010
China Sun Group High-Tech Co. (OTC Bulletin Board: CSGH) ("China Sun Group" or the "Company"), a vertically integrated supplier of raw materials for rechargeable Lithium–ion (Li-ion) batteries in China, today announced that it has signed a contract with Henan Huanyu Sai Er New Energy Technology Co., Ltd. ("Sai Er New Energy"), a subsidiary of Henan Huanyu Power Source Co., Ltd., for 470 tons of lithium iron phosphate (LIP).
Pursuant to the contract, China Sun will deliver a minimum of 470 tons of LIP to Sai Er New Energy throughout calendar year 2011. Specific delivery volumes for each month are as follows:
- Jan. – Feb. 2011 25 Tons / Month
- Mar. – Jun. 2011 30 Tons / Month
- Jul. – Dec. 2011 50 Tons/ Month
Throughout the duration of the contract, China Sun will send Sai Er New Energy product research materials and offer technical engineering consultancy services in order to provide the customer with a complete end-to-end solution.
Separately, China Sun announced that it has sold 40 tons of LIP to Huanyu Power Source under the agreement previously reported on September 21, 2010. China Sun's management currently believes that it will deliver 60 tons of LIP to Huanyu Power Source in total by the end of December 2010.
Huanyu Power Source Co., Ltd. began its main business of R&D, manufacture and distribution of replacement batteries in 1982. Huanyu has established a hi-tech industrial park engaged in the production of Nickel Cadmium, Nickel Hydrogen, Lithium ion and Lead Acid batteries, in more than 100 models with a daily capacity in excess of 2 million secondary batteries. Huanyu currently has more than 10,000 employees with 400 dedicated to research.
"We are very pleased to further extend our cooperation with Huanyu Power Source," commented Mr. Guosheng Fu, CEO of China Sun Group. "In our previous experience with this customer, we were able to prove our LIP production capabilities by providing a high quality product and excellent customer service, enabling us to win a second contract with one of their subsidiaries. Going forward, we are very excited about the growing market demand for LIP production, and we are ready to expand our production capacity in a very short time frame to satisfy this demand."
Source: http://www.china-sun.cn/