Kuala Lumpur: Sapura Industrial Bhd’s subsidiary, Sib Ventures Sdn Bhd, has signed a memorandum of understanding with Zhejiang Zhongze Precision Technology Co Ltd (ZZ Tech) based in China. The agreement aims to establish a manufacturing facility for battery components in Malaysia.

According to BERNAMA News Agency, the automotive component maker revealed in a filing with Bursa Malaysia that the collaboration involves conducting feasibility studies to produce and supply battery components for commercial and industrial applications. The proposed partnership will be finalized upon reaching an agreement on the business plan, followed by negotiations and the execution of a definitive agreement detailing the terms, rights, and obligations for each party.

The companies plan to finalize a definitive agreement within 180 days from the MoU date. ZZ Tech specializes in the precision manufacturing of structural components for new energy batteries, with applications in new energy vehicles and lithium battery energy storage.