Changs Ascending Enterprise Co., Ltd. (CAEC), the producer of cathode material for LiFePo4batteries, announced yesterday that the company has passed the private equity of 4.5 million shares for capital increment.

Zhang Dunyu, the general manager of CAEC, said that the targets of the private equity are international giants, in order to build the platform of international cooperation and jointly expand the global market.

In addition, Mr. Zhang Dunyu also announced that「4005」cathode material with higher energydensity has been successfully developed. CAEC has invested NT$100 million for another production line, which is expected to start production next year, and the monthly production capacity is about 40 tons.

CAEC confirmed that 「4005」cathode materialhas the great advantages of capacity-density and power over 「3005」material, which is very helpful to the profitability of CAEC.

CAEC has been supported by Formosa Plastic Group. Formosa Energy & Material Technology Co., Ltd.,joint venturedby Formosa Plastic Group and CAEC, takes in charge of production, and CAECis mainly involved in R&D.

The gross profit of cathode materialand cell module is 40%, and CAECis expected to enter the promising growth period in the second half of 2011 under the patents of manufacture procedure and cathode material.