(Yicai Global) Sept. 20 -- Chinese metal processor GEM has taken aim at the country's ever-growing new energy vehicle market with plans for CNY1.9 billion (USD270 million) joint venture for the production of lithium battery material in Ningde in the southeastern Fujian province.
Wholly-owned unit GEM New Materials has inked a framework agreement with Yongqing Technology to carry out the project, the Shenzhen-based firm said in a statement. Ningde is also home to Contemporary Amperex Technology, world's biggest electric-car battery maker.
GEM New Materials will hold a 60 percent stake in the JV with partner Yongqing holding the remainder. The pair initially aim to produce 50,000 tons of ternary precursor materials and 20,000 tons of ternary cathode.
China's battery production is critical to the country's efforts to end production of gasoline and diesel-powered vehicles in the near future. It is already the biggest NEV market globally and has already outlawed the local production of 553 specific models that do not meet fuel-consumption limits.
The statement did not confirm details of a timeframe for the project.
Editor: William Clegg