SLAC subsidiary partners with Dongwon for battery casing joint venture

Suzhou SLAC Precision Equipment Co., Ltd. (SLAC) announced that its wholly-owned subsidiary, Suzhou Xianlai New Energy Automobile Parts Co., Ltd., has signed cooperation agreements with South Korean Dongwon Systems Corporation. The agreement establishes a joint venture in China with a registered capital of $10 million to engage in the battery casing business. Dongwon Systems will contribute $2.5 million, with an initial contribution of $0.75 million.

Under the agreement, SLAC will provide an irrevocable and unconditional guarantee for Suzhou Xianlai’s obligations related to the equity transfer clause. This guarantee falls within the scope of the RMB 1.92 billion aggregate guarantee limit for 2025, previously approved by the board of directors and shareholders. As of the announcement date, the actual guaranteed amount is RMB 994.6365 million, representing 48.81% of the company's latest audited net assets.

The partnership aims to expand SLAC's new energy structural parts business and strengthen its position in the domestic battery casing market, aligning with the company's long-term development strategy. The investment is funded by SLAC's own capital and is not expected to materially impact the company’s financial condition or operating results.