A Chinese electric vehicle battery manufacturer, SVOLT Energy Technology Co LTD has filed for an initial public offering (IPO) to raise as much as 15 billion yuan (about $2.1 billion) on Shanghai’s STAR market. The battery maker, backed by Xiaomi Corp, is a spin-off of Chinese automaker Great Wall Motors and was formed in 2018. The company is backed by several venture investors including privately run CDH investments as well as state run China Mobile and insurance firm PICC Group.

The company’s current client base is largely composed of domestic car makers including Great Wall Motors, Geely Auto, Leapmotor, XPeng (NYSE: XPEV), Li Auto (NASDAQ: LI), and Dongfeng Motor.

According to the draft papers, the company intends to raise 15 billion yuan ($2.095 billion) from the IPO, which is expected to lift SVOLT’s market valuation to 60 billion yuan ($8.383 billion). The proceeds will be used to build the company's power battery facilities in Changzhou, Huzhou and Suining, along with an R&D center in Wuxi, develop the projects of high-energy-density ternary-lithium batteries and battery system, the "second-generation" cobalt-free cathode materials, cobalt-free batteries and battery systems, "Short Blade" batteries and battery systems, and new-type batteries, as well as supplement working capital.

By Michael Elkins | [email protected]