(Yicai Global) May 15 -- XTC New Energy Materials surged after the Chinese battery materials supplier said it will set up two lithium battery material joint venture plants in France.

XTC [SHA: 688778] finished 12.4 percent higher at CNY71.21 (USD10.24) in Shanghai today, after earlier soaring by as much as 14.4 percent.

XTC will own 51 percent of a battery cathode material JV plant and 49 percent of a battery precursor JV factory, with a unit of French nuclear power producer Orano holding the rest, the Xiamen-based firm announced today, citing a deal the pair will ink tomorrow. The projects will be located in Dunkirk, a port city in northern France.

The partners will set up two JV project firms to oversee construction and operation of the plants, said XTC, a unit of Chinese tungsten giant Xiamen Tungsten. The projects are subject to approval by China's overseas investment management authority, it noted, without disclosing further details.

Reuters reported that French President Emmanual Macron said on May 12 that XTC and Orano will likely invest EUR1.5 billion (USD1.6 billion) in the JVs, creating 1,700 jobs.

Precursors are a major material used to make cathode materials, the main component of ternary lithium batteries.

XTC's sales of ternary lithium battery materials surged 71 percent to 46,400 tons last year from 2021, accounting for 47 percent of its revenue, the firm's annual earnings report showed. Its clients include global power lithium battery leaders such as CALB Group, Panasonic, BYD, Contemporary Amperex Technology, and Gotion High-Tech.

Editor: Martin Kadiev