(Yicai Global) Aug. 11 -- Chinese coke producer Baotailong New Materials Co. [SHA:601011] plans to invest CNY50 million (USD7.5 million) in a new graphite ore processing firm to supply raw materials for its graphene industrialization project, the company said in a press briefing on Aug. 10.

The graphite ore subsidiary, based in the city of Qitaihe in Northeast China's Heilongjiang province, will operate a 600,000-ton graphite fine powder concentrator and a tailings pond for processing waste.

Baotailong currently utilizes external concentrators to supply graphite raw materials for its graphene production plant, also in Qitaihe. The firm will save on outsourcing costs through the subsidiary and ensure a reliable supply of raw materials.

The company has considered building a local concentrator and tailing pond since late 2016, total investment at the time was projected to be CNY263 million.

Baotailong has branched out into the graphene market in recent years and developed a proprietary large-scale technique for graphene preparation. It completed construction of a graphene plant able to produce one million tons annually in October last year.