DALIAN, China, Sept. 21 /PRNewswire-Asia/-- 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 an agreement to supply Huanyu Power Source Co., Ltd. ("Huanyu") with a minimum of 40 tons of Lithium Iron Phosphate (LIP) by the end of calendar year 2010.
China Sun Group's management believes that the total amount of LIP sold to Huanyu by the end of the current year will be approximately 60 tons.
Prior to signing the contract, Huanyu spent three months testing China Sun Group's LIP material and an additional three and half months testing the
Li-battery applications for the LIP material. Both tests successfully met Huanyu's production standards. China Sun Group and Huanyu have agreed to hold a meeting at the end of December to discuss Huanyu's LIP requirements for calendar year 2011.
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 excited to announce our first agreement with Huanyu Power Source Co. as Huanyu is the first company to manufacture batteries at the China New Energy Automobile Production Experimental Site," commented Mr. Guosheng Fu, the recently appointed Chief Executive Officer of China Sun Group High-tech Co. "The agreement is a great start as we seek to expand our LIP market, and begin the industrialization of our LIP production line."
About China Sun Group High-Tech Co.
China Sun Group High-Tech Co. ("China Sun Group") produces anode materials used in lithium ion batteries. Through its wholly-owned operating subsidiary, Dalian Xinyang High-Tech Development Co. Ltd ("DLX"), the Company primarily produces cobaltosic oxide and lithium cobalt oxide. According to the China Battery Industry Association, DLX has the second largest cobalt series production capacity in the People's Republic of China. Through its research and development division, DLX owns a proprietary series of nanometer technologies that supply state-of-the-art components for advanced lithium ion batteries. Leveraging its state-of-the-art technology, high-quality product line and scalable production capacity, the Company has recently diversified into the manufacture of LIP and plans to forward integrate to manufacture of power Li-ion batteries. For more information, visit http://www.china-sun.cn .
Safe Harbor Statement
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For more information, please contact:
Company Contact:
Mr. Guosheng Fu, Vice President
China Sun Group High-Tech Co.
Tel: +86-411-8288-9800 / 8289-2736 (China)
Email: ir@china-sun.cn
Investor Relations Contact:
Mr. Mark Collinson, Partner
CCG Investor Relations
Tel: +646-833-3422
Email: mark.collinson@ccgir.com