China’s Anhui EIKTO Battery, which develops industrial lithium-ion batteries, has secured 400 million yuan ($56.1 million) in a new funding round to strengthen its market position as a provider of electric forklifts and new energy ships.
This fundraising attracted the participation of state capital investors including Hefei Industry Investment Group and Kaisheng Group, both headquartered in eastern China’s Anhui Province. A 3-billion-yuan ($421 million) auto-dedicated industry fund backed by China Galaxy Financial Holdings was also among the investors.
Anhui-based EIKTO, also known as EKT, specialises in the R&D, production and sales of lithium-ion batteries for use in industrial vehicles and construction machinery, including forklifts, mining trucks, loaders, and excavators.
Despite being pricier than lead-acid batteries, lithium-ion batteries, which are commonly found in consumer electronics like mobile phones, laptops, and portable power banks, are gaining popularity thanks to their many merits. While lead-acid batteries are cheaper and easier to instal, lithium-ion batteries are lighter in weight and smaller in size. They charge quicker than lead acid batteries and endure more charging and discharging cycles without compromising on performance.
Globally, the lithium-ion battery market is projected to grow at a compound annual growth rate (CAGR) of 18.6% to reach $634.97 billion by the end of 2037 from about $67.34 billion in 2024, according to an October market report by Research Nester.
“Competition in the lithium-ion battery industry is heating up despite the current capital market winter. We see EIKTO, as a frontrunner of the world’s electric forklift industry, expanding into emerging areas like the development of electric ships and [new energy-powered] construction machinery. Its industrial lithium-ion batteries are fundamentally different from those used in electric vehicles,” said Zhao Huibo, managing director of InvesTarget, the deal’s exclusive financial advisor.
EIKTO was established in 2006 in southern China’s Shenzhen City before moving to southeast Anhui, where it set up new manufacturing facilities in 2022 with an annual output of up to 12 gigawatt hours (GWh). Its self-built industrial park covers an area of over 260 acres (about 11.3 million square feet), with plans to bring its annual output to cross 18 GWh.
For its main business of powering electric forklifts, EIKTO has partnered with Japan’s Toyota Motor Corp, US material-handling equipment maker Hyster, and Chinese construction machinery maker Lonking Holding Ltd. It is also exploring the application of lithium-ion batteries in new energy ships and energy storage. The firm claims to have delivered more than 500 electric ships so far.
