(Yicai Global) July 16 -- Jiangxi Copper, China’s biggest producer of the metal, plans to invest CNY11.4 billion (USD1.8 billion) in a new project to make copper foil for lithium batteries.

The new plant in Shangrao, Jiangxi province, will cost CNY3.6 billion and will produce 100,000 tons of copper foil a year, the company said in a statement late yesterday. The project is divided into two phases, each of which has a capacity of 50,000 tons, to start production by 2023 and 2028, respectively. The remaining CNY7.8 billion will be spent on fixed assets.

The electrodeposited copper foil project not only meets growing market demand for key materials used in for lithium batteries, but can also help the Nanchang, Hebei province-based firm to consolidate its leading position in the copper processing industry and enhance market share.

Due to its excellent electrical conductivity and mature production technology, copper foil is an important part of lithium battery cathodes. Its function is to collect charges generated by the battery to form a larger current output.

Jiangxi Copper will also build a CNY800 million (USD123.8 million) plant in Shangrao with an annual capacity of 220,000 tons of copper rods, the firm said. Moreover, it will invest CNY600 million in a joint venture to produce 30,000 tons a year of cast materials, it added.

Jiangxi Copper’s share price [SHA:600362] closed up 0.7 percent to CNY24.89 (USD3.85) today, after rising almost 3 percent this morning.

Editor: Futura Costaglione