(Yicai) Sept. 24 -- China's Yuneng New Energy Battery Material will boost investment in its Spanish battery-materials project by almost 70 percent to nearly CNY1.7 billion (USD253.3 million) as it expands planned capacity based on market demand and project needs.

The Chinese battery-materials maker will raise the project's planned annual production capacity by 40 percent to 70,000 tons from 50,000 tons, the Hunan province-headquartered company announced yesterday.

Yuneng makes lithium iron phosphate and ternary cathode materials used in electric vehicle and energy-storage batteries. It operates five production bases across China.

Yuneng originally approved the Spanish project in April 2024 with a planned investment of CNY982 million (USD146.3 million). It also approved establishing the local project company Yuneng International Spain New Energy Battery Material.

Yuneng said the additional investment reflects market demand, as well as the project's construction and operational arrangements. The adjustment will help advance the Spanish project and provide production capacity to support the continued rapid growth of its international business.

The additional investment will come from the company's own and self-raised funds and is in line with its long-term development strategy and investment direction, Yuneng added.

Editor: Emmi Laine