(Yicai) Nov. 13 -- Tinci Materials Technology, the world's largest supplier of lithium battery electrolytes, plans to invest up to CNY5 billion (USD749.5 million) to expand its production capacity for electrolytes and other key raw materials used in batteries.

The project, to be built near the company's existing plant in Chizhou, eastern Anhui province, will have an annual production capacity of 400,000 tons of lithium battery electrolyte and 100,000 tons of sodium battery electrolyte, the Guangzhou-based firm announced yesterday.

The new facilities will also produce various electrolyte chemicals, including liquid lithium hexafluorophosphate and sodium hexafluorophosphate, two key raw materials used in battery electrolytes.

Construction is expected to take 24 months. Once operational, the project will create an integrated production base for battery electrolytes and their chemical components in Chizhou, helping reduce transportation costs for raw materials and finished products and optimize the company's cost structure, Tinci said.

The investment will also strengthen the company's production capacity for core products and help ensure its ability to fulfill medium- and long-term orders, it said.

Tinci has been expanding sales to consolidate its leading position in the global market. The company sold more than 720,000 tons of lithium battery electrolyte last year, up about 44 percent from 2024, and held a global market share of 32.2 percent.

The company has also been securing major supply contracts. Last week, it reached an agreement with Chinese battery maker EVE Energy to supply a total of 450,000 tons of products over the next three years.

Meanwhile, Tinci is expanding its international presence. In addition to its factories in China, the company has begun supplying local customers through its original equipment manufacturing partners in the United States and Germany, according to its latest annual report. It is also building new factories in the US and Morocco.

Shares of Tinci [SHE: 002709] rose 2.5 percent in intraday trading today following the announcement, but reversed course to close down 2.2 percent as the Shenzhen Composite Index fell 2.1 percent.

Editor: Emmi Laine