Chinese battery maker Svolt Energy Technology is set to invest 7 billion yuan ($1.07 billion) on the construction of a power battery plant in Huzhou, East China's Zhejiang province.

The plant, with a 20GWh production capacity, will produce lithium ion cells, modules, packs, and battery management systems.

Its annual sales are forecasted to reach 12 billion yuan after the plant is put into operation.

Svolt, a spin-off from China's Great Wall Motors, has establishes a total of seven R&D centers worldwide.

The number of new patents published by the company eclipsed other domestic competitors in 2020. It is the first company to bring cobalt-free high nickel cell chemistry to mass production readiness.

The plant's establishment in Huzhou will help Svolt expand its business presence in the Yangtze River Delta and pave the way to fostering a new energy vehicle ecosystem in the region.

In addition, it is also expected to fuel the growth of the NEV industry in Southern Taihu Lake New District, where the plant will be located.

NEV and key components are one of the pillar industries in the district.