June 29 (Reuters) - Chinese battery materials producer GEM Co will invest 310 million yuan ($48 million) in a project to make 100,000 tonnes per year of battery-grade nickel and cobalt from recycling in central China’s Hubei province, it said on Tuesday.
The investment - which GEM said was being made to mark the 100th anniversary of the founding of China’s ruling Communist Party - comes as the company looks to roughly triple its annual battery precursor production to over 400,000 tonnes by 2025 to meet burgeoning demand from the electric-vehicle sector.
The project in the city of Jingmen, where GEM has an existing recycling base, will produce three battery-grade chemicals - nickel sulphate, cobalt sulphate and cobalt chloride - in equal measure, GEM said in a stock exchange filing.
The company, which is also pursuing a smelting project in Indonesia that will make battery-grade nickel and cobalt, said the Jingmen plant would take nine months to construct, with the funds to come from its own coffers and from bank loans.
$1 = 6.4640 Chinese yuan renminbi Reporting by Tom Daly Editing by Mark Potter