(Yicai Global) Aug. 3 -- China’s Capchem Technology will build a CNY1.5 billion (USD232 million) lithium-ion battery electrolytes plant in the Netherlands to meet rising demand for new energy vehicle battery materials in Europe.

The new facility, located in the Port of Moerdijk, will work closely with Capchem’s electrolyte material plant under construction in Poland to supply battery materials to clients in Europe, the Shenzhen-based firm said last night.

The new plant is expected to bring in revenue of CNY6.7 billion (USD1 billion) and have pretax earnings of about CNY800 million (USD124 million) once it is fully completed and has reached its output target, Capchem said.

The project is divided into two phases. The first has an annual capacity of 50,000 tons of lithium-ion battery electrolytes and 100,000 tons of carbonate solvents, and is to be completed by 2024. Once operational, the company’s annual production capacity of electrolytes will reach 100,000 tons and that of carbonate solvents 200,000 tons.

Booming demand for NEVs boosted battery material suppliers in the first half of the year. Capchem said net profit rose as much as 84 percent to CNY437 million (USD67.5 million), while revenue soared 114 percent to CNY2.56 billion (USD396 million) in the six months ended June 30.

Shares of Capchem [SHE:300037] closed down 1.2 percent today at CNY120.05 (USD18.56). The company’s stock price has climbed by about 70 percent in the last two and a half months, reaching an all-time high of CNY139.80 (USD21.62) in early July.

Editor: Futura Costaglione