Posted on 29 Mar 2023
Shenzhen-listed manufacturer GEM recently announced it has recently signed a memorandum of understanding with South Korean firms SK On and Ecopro. The three companies formed an initial plan to establish a joint venture for precursor cathode active material (PCAM) manufacturing, Kallanish learns.
They plan to invest about KRW 1.21 trillion ($930.86 million) to build production capacity for 43,000 tonnes of ultra-high-nickel multi-precursor and the supporting systematic production capacity of nickel, cobalt and manganese raw materials. In the future, they plan to further expand the production capacity to no less than 100,000 t.
GEM is one of the largest lithium battery recycling firms in the world. In the new material industry, GEM has already become a core global supplier for ternary precursors.
The company expects the penetration rate of high-nickel batteries will reach about 30% in 2025 in the Chinese domestic market and will exceed 70% in the European and American markets. By then, the global demand for high-nickel ternary cathodes will likely exceed 1.5m t.
Source:Kallanish
