HIPO Resources Ltd (ASX: HIP), a mining company with partial farm rights to the Kamola Lithium Project Joint Venture with Crown Mining Sarl and 35% earn-in interest in Next-Battery revealed a positive news to the market. Next-Battery lately succeeded in securing a strategic relationship with Lvchi Automobile Technology Co Ltd. LVCHI is confident of Next-Battery’s lithium ion technology, which will play a significant role in the development plans of Lvchi going forward. Next-Battery, however, is on the verge of completing its first advanced prototype battery. Next-Battery and Lvchi will visit Ukraine and China during Q1 2019 to finalize a plan of formalizing a commercial collaboration venture in China designed to fast-track the commercial roll-out and development of Next-Battery. The Next-Battery’s operations in Ukraine is experiencing steady progress on the prototype production of anode and cathode currently.
HIPO Resources Limited, that has an interest stake of almost 35% in Next-Battery reported significant progress of the Next-Battery, which has a technology involving lithium-ion chemistries with novel nano-structuring. It effectively ‘upgrades’ a battery electrode’s functional properties as mentioned by HIPO Resources Ltd. Next-Battery demonstrated its advanced technology for the prototype battery which aims to show a minimum 50% increase in specific energy from the best commercial lithium-ion batteries on the market. On the other hand, the core focus of Lvchi Automobile is on new energy vehicles, and the company adds value in several operations like production, marketing, and the provision of after-sales service. The company was registered in Hong Kong. Lvchi targeted annual output of over 500,000 vehicles. It has diversified business platforms including product creation, travel services, capital, and financial services. Lvchi has its technology centers in Coventry, England and Silicon Valley in California, USA, however, the developments and innovation on the engineering front are carried out by Shanghai engineering research institute and Wuxi research in Beijing.
The CEO of Next-Battery Benton Wilcoxon mentioned that the collaboration with Lvchi is very encouraging as this will open further opportunities for the company and will add to its development which he is confident of. He also stated that Next-Battery is well advanced in developing a battery that has the potential to replace existing technologies being used in EV’s recently.
On the technical front, the company has completed the development of technology which will add the new Solid-state electrolyte team to the group, and it is also starting various conductivity tests on the company’s double-walled nanotubes of carbon, which the parent company has developed for other applications.
On the other hand, the Executive Chairman of HIPO, Maurice Feilich added that the strategic collaboration is a confirmation the board’s belief about the Next-Battery’s path of accelerated growth they are seeking for. Since Lvchi is a fully integrated company that focuses on new energy vehicles, it fits nicely with the progressive approach taken by Next-Battery in developing next-generation batteries. Furthermore, he also stated that Lvchi’s corporate strategic positioning will give an upper hand to the company to create an intelligent mobile life operator, which is a huge positive for both Next-Battery and HIPO and the joint effort of collaborating with Next-Battery will prove beneficial as it rapidly moves to the commercial prototype stage. While the update was a positive one, HIPO shares plunged by 5.6% on December 10, 2018.