China Sun Group High-Tech Company (OTCBB: CSGH) announced that its wholly-owned subsidiary, Dalian Xinyang High-Tech Development Co. Ltd. (“DLX”), has entered into two one-year contracts with Shenzhen Haoran Battery Co., Ltd. The two purchase and sale agreements, together worth about $16.2 million in revenues, will supply Haoran Battery with 20 tons of lithium cobalt oxide and 20 tons of lithium manganese oxide per month beginning this November.
DLX has the second largest cobalt production capacity in China, according to the China Battery Industry Association. DLX will provide the lithium cobalt and lithium manganese, which will be used in the manufacture of lithium ion batteries. The former sells for about $59,000 per ton and the manganese sells for about $8,800 per ton.
“Haoran Battery is one of the world’s leading suppliers of power components used in mobile phones and we are excited to add them to our roster of customers,” said Bin Wang, China Sun Group CEO. “We are on schedule to begin fulfilling their orders.”
CSGH said it has plans to create “a fully integrated supply chain from the primary manufacturing of cobalt ore to finished products.” DLX has a research and development division, which supplies components for the same type of lithium ion batteries.
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