(Yicai Global) Sept. 3 -- China's GEM, a recycled parts supplier to Contemporary Amperex Technology and Samsung Electronics, has teamed up with Indonesian mining and mineral processing company PT Halmahera Persada Lygend on battery materials.

HPAL's new plant will provide GEM with up to 17.9 tons of nickel compounds and as much as 2.2 million tons of cobalt compounds over the contract period of eight years, the Shenzhen-based firm said in a statement yesterday, without disclosing pricing details.

The deal should help GEM guarantee its raw material supply while increasing its global market share, one of the world's third-biggest suppliers of ternary precursor materials added.

China’s Ningbo Lygend Mining and Indonesian conglomerate Harita Group are jointly building the nickel and cobalt extraction plant on Obi Island with a total investment of USD2 billion. After completion next year, it is expected to produce 145,000 tons of nickel compounds and 75,000 tons of cobalt compounds each year, according to public data.

GEM's stock price [SHE: 002340] fell 1.5 percent to CNY5.33 (US 78 cents) today.

Editor: Emmi Laine