(Yicai) Jan. 5 -- GEM, China’s largest supplier of battery raw materials and leading battery recycler, delivered more than 170,000 tons of ternary precursor last year, an increase of more than 10 percent, according to its annual core product sales report.

Despite severe overcapacity in the industry, GEM secured a leading spot in the global high-end battery materials market thanks to the innovative development of new-generation products, the report said yesterday, adding that the firm’s ternary precursor utilization rate exceeded 65 percent in 2023.

Ternary precursors, which include nickel, cobalt, and manganese compounds, are the main raw materials used to make cathode materials for ternary power lithium batteries. Shenzhen-based GEM is one of the world’s major suppliers of this material.

GEM’s nickel ore processing project in Indonesia shipped nickel compounds with a nickel content of 27,000 tons last year, exceeding the output target of 26,000 tons and achieving an annual capacity utilization rate of over 100 percent, contributing good profits to the company, it said.

Nickel compounds are one of the main raw materials for ternary precursors.

GEM’s first nickel ore processing project in Indonesia was completed and put into operation in last January. GEM is the majority shareholder of the project, with a 63 percent stake. Chinese nickel mining and processing giant Tsingshan Holdings, Chinese battery maker Contemporary Amperex Technology, South Korean cathode materials supplier EcoPro, and Japanese steelmaker Hanwa are the other shareholders.

In yesterday’s report, GEM also mentioned that its power battery recycling and cascading use business was among the top in the world. The firm’s recycled and dismantled 27,000 tons of power batteries last year, equal to 3 gigawatt-hours, up over 50 percent from a year earlier. Its annual lithium carbonate recycling capacity rose to 10,000 tons, and the recovery rate for lithium resources topped 95 percent.

GEM’s shares [SHE: 002340] closed 0.4 percent down at CNY5.33 (75 US cents) each in Shenzhen today. The stock fell 29 percent last year.

Editor: Futura Costaglione