(Yicai) June 12 -- Tinci Materials Technology, a leading Chinese supplier of electrolytes and electrolyte chemicals for lithium batteries, has signed a MAD2.6 billion (USD282.3 million) deal with Morocco’s government to build a factory in the North African country.

Located in the Jorf Lasfar Industrial Park in El Jadida, the plant will have an annual production capacity of 150,000 tons of electrolytes and other key lithium battery raw materials, the Guangzhou-based firm announced yesterday, citing the investment agreement.

Tinci has pledged to put the plant into production and hit the agreed output and export targets within five years from the effective date of the agreement, as well as create a certain number of state jobs from 2028, it noted.

Morocco offers a stable political and economic environment, a business-friendly trade climate, and abundant phosphate resources. Located just across the Mediterranean sea from Europe, it has geographic and cost advantages.

Tinci said the plant will help the company better meet demand for lithium battery electrolytes and chemicals from European customers and will enhance its global footprint.

In August 2023, Tinci announced a plan to issue global depository shares on the Six Swiss Exchange and use the proceeds to build four new factories, including the one in Morocco, which was expected to cost CNY2 billion (USD279 million) and have an annual output capacity of 300,000 tons. Then this April, Tinci said it had pulled the listing plan due to changed operating conditions.

Despite this, the company does not intend to halt its overseas expansion. In April, Tinci said on the Shenzhen Stock Exchange ’s investor platform that it had bought a piece of land in Texas, United States to build a factory, another one of the four mentioned in the GDR issuance report.

Tinci's lithium battery materials business had revenue of CNY11 billion (USD1.5 billion) last year, accounting for nearly 88 percent of its total income. The firm is also engaged in original equipment manufacturing of lithium battery electrolytes in Germany, helping it better serve European clients.

Tinci's shares [SHE: 002709] closed 0.1 percent up at CNY17.52 (USD2.44) each in Shenzhen today. The stock has fallen 11.2 percent since the end of last year.

Editor: Futura Costaglione