(Yicai Global) Sept. 14 -- Zhejiang Huayou Cobalt, China’s top cobalt producer, and South Korea’s LG Chem, a world leading manufacturer of electric vehicle batteries, have completed their USD1 billion auto battery anode material factory in Wuxi, southeastern Jiangsu province, The Paper reported today.

Leyou New Energy Materials, in which Huayou Cobalt holds a 49 percent stake, should start mass production of 5,000 tons of cathode materials this month and this will reach 45,000 tons by the third quarter next year, the report said.

Cathode is a key energy source for lithium-ion batteries and has a great impact on battery performance, safety and price.

Once fully operational, the plant should have an annual production capacity of 100,000 tons with an output value is CNY20 billion (USD2.9 billion).

With the two parties’ strong positions in their respective fields, Leyou is expected to become the world's largest plant of positive electrode materials for power batteries for NEVs, said Wuxi Deputy Mayor Jiang Min.

Editor: Kim Taylor