Gree Electric Appliances Inc, a leading Chinese home appliances maker, is planning to branch into new-energy vehicles by acquiring a local electric car producer which controls a Nasdaq-listed US battery firm.

It's the latest effort by China's largest air-conditioner manufacturer to diversify its business, as dwindling air-conditioner sales weigh on revenue and profitability.

Gree is planning to issue new shares to buy Zhuhai Yinlong New Energy Co, which itself is the controlling shareholder in Altair Nanotechnologies Inc, a Nevada-based lithium battery company, the company said on Sunday.