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ompounder China XD Plastics has secured a contract to supply 2,000 tonnes/year of materials designed for automotive use. The first batch will be delivered early in 2011 and will be used in the production of the Hafei electric vehicle (EV) and certain brands of EVs manufactured in Taiwan.

China XD Plastics began the development of the material in 2010 and signed an exclusive development agreement with Hafei Dongyang, an automotive parts supplier in Northeast China, followed by a testing, certification and product trial process that culminated in the approvals by automotive manufacturers for use in battery casings.

In addition to possessing improved mechanical properties compared to metals, the material is said to further reduce the weight of the battery and the electric vehicle as a whole.

The Chinese government plans to invest RMB100 billion in the next ten years to support the development of clean energy technologies and the new energy automotive industry, with a focus on providing support for the developers of core components, parts and new materials for use in the clean energy industries.

The company believes that the gradual implementation of these government policies will act as a powerful growth driver supplementing the overall growth of the automotive industry in China and will provide opportunities to increase sales of high-value added and higher margin products.