(Yicai Global) June 30 -- GEM is to spend an additional CNY310 million (USD48 million), on top of the CNY1.8 billion (USD278.8 million) it announced earlier this month, to build another battery materials production line, the Chinese raw material supplier for new energy vehicle batteries said yesterday.

The new facility, to be located in Jingmen, central Hubei province, will produce high-purity nickel salt and cobalt salt crystal products, with a production capacity of 100,000 tons per year, it said. Construction should take nine months.

Once up and running, the plant will bring in profit of CNY186 million (USD28.8 million) each year and revenue of CNY4.98 billion, the Shenzhen-based company said.

GEM is actively seeking to more than double its current production capacity of ternary precursor materials to 400,000 tons a year by 2025. In early June, it announced that it will spend CNY1.8 billion to expand production at its factory in Taixing, eastern Jiangsu province by 30,000 tons a year, bringing its yearly output to 200,000 tons once fully completed in late 2023.

The company also has production bases in Jingzhou, Hubei province and Fu'an in southeastern Fujian province.

GEM’s stock price [SHE:002340] closed up 0.32 percent at CNY9.35 (USD1.45) today.

Editor: Kim Taylor