Chinese battery firm GEM Co Ltd signed a memorandum of understanding with South Korean battery producer ECOPRO Co Ltd for the supply of 170,000 tonnes of raw materials from 2019 to 2023, Reuters reported.
GEM said in a filing to the Shenzhen stock exchange today that the company will provide 16,000 tonnes of lithium nickel-cobalt-aluminium oxide (NCA) cathode materials in 2019. The volume will increase to 24,000 tonnes in 2020 and 40,000 tonnes in 2021.
GEM, with production capacity of 60,000 tonnes per annum, will separately negotiate with the ECOPRO about further purchase plans for 2022 to 2023.
“We will adjust production capacity based on demands in 2019 to ensure the orders from customers,” said GEM on Monday separately at a platform run by the Shenzhen Stock Exchange.
GEM will also provide nickel hydroxide raw ingredient and share technology of sulphate production from cobalt hydroxide and nickel hydroxide with ECOPRO.
Both the companies will also work together to construct plants for cobalt power and basic nickel carbonate production in South Korea.