The MOU between the two companies covers numerous areas, including joint development of graphene-related projects.
Versarien (LSE:VRS) announced on Wednesday (November 7) that it has signed a memorandum of understanding (MOU) with Tunghsu Optoelectronic Technology (SZSE:000413) for the industrialization of graphene.
Versarien, an advanced engineering materials group, said that the MOU covers multiple areas, including joint development of graphene-related projects. The company said that the development will include combined operation and execution of such projects for sale in China and global markets, along with exploring additional products utilizing graphene.
Tunghsu Optoelectronic, a company primarily engaged in optoelectronic display materials among other applications, and Versarien will focus their join efforts on current areas of activity for both companies.
These areas include high graphene manufacturing, photoelectric display materials, new energy vehicles, energy storage technologies, LED lighting systems and graphene thermal management materials.
Further the two companies will jointly set up a graphene industry fund to promote and support the operation and execution of graphene industrialization projects.
It was also noted that the companies will discuss mutual “strategic investments” for graphene based products, although more details are set to be agreed upon in future discussions.
“As one of the pioneers of China’s graphene industry, Tunghsu Optoelectronic has strong industrial influence and execution ability in China and in Asia more widely,” Neill Ricketts, CEO of Versarien, said in the release. “We look forward to working with them to progress the commercialization of our graphene products.”
Crucially, Versarien’s MOU with Tunghsu Optoelectronic was not termed as an exclusive between the two parties, meaning Versarien can enter into further agreements with other parties in China.
A graphene industry research institute is also tipped to be set up in China to fund and to accelerate the commercialization of graphene application projects. The companies will work with government agencies, academic institutions and other organizations to fund this institute.
“China has a huge market potential for graphene industrialization and commercialization,” Lipeng Wang, CEO of Tunghsu Optoelectronic, said in the release.
The MOU comes two days after Versarien provided an update on its China operations. The company announced on Monday (November 5) that it signed a framework agreement with Qingdao Municipal Bureau of Commerce in the field of graphene research. Further, the company said that the agreement could lead to a graphene focused operation in Qingdao, a major city in Shandong Province, China.
Following Wednesday’s, shares of Versarien closed the trading session on Wednesday at GBP 1.30 with the stock up by 14.55 percent. Over the last month, the share price has lost 11.22 percent, but it has increased 113.93 percent year-to-date. The stock has a “Buy” ranking on TradingView with nine verticals in favor, 10 in neutral and seven against.
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Securities Disclosure: I, Bala Yogesh, hold no direct investment interest in any company mentioned in this article.