(Yicai Global) June 26 -- Huayou Cobalt, a leading Chinese cobalt supplier, and CNGR Advanced Material, a Chinese maker of lithium-ion battery cathode precursors, have unveiled plans to expand overseas.

Huayou will invest nearly EUR1.3 billion (USD1.4 billion) to build a nickel-rich ternary lithium battery cathode material plant in Komárom-Esztergom county in Hungary, the Tongxiang-based firm said on June 21, before a three-day holiday in China. The first phase of the project will cost EUR252 million (USD274 million) and have an annual output of 25,000 metric tons.

CNGR, which has a nickel ore processing plant in Indonesia, announced on the same day that it intends to spend CNY8.3 billion (USD1.1 billion) to set up two joint ventures with Posco Holdings, South Korea’s largest steelmaker, to build two lithium battery material plants in Pohang, South Korea.

The first JV, of which CNGR will own 80 percent and Posco the rest, will build a CNY6.1 billion ternary lithium battery precursor plant with an annual output of 110,000 mt. The other JV, of which Posco will own 60 percent and CNGR the rest, will build a plant to make nickel sulfate refined products, with fixed assets investment of about CNY2.2 billion.

Nickel sulfate is one of the main component chemicals of battery precursor, a raw material used for producing cathode materials for ternary lithium batteries.

These projects were not Hayou’s and CNGR’s first overseas expansion plans to mitigate the impact of tightening import rules in the United States and Europe.

In April, Huayou teamed up with Seoul-based battery giant LG Chem to build a battery cathode material plant in Gunsan, South Korea. CNGR announced last September that it would set up in South Korea a JV with SK Group, the owner of battery developer SK Innovation, to carry out lithium battery material production as well as research and development projects.

Shares of Huayou [SHA: 603799] closed down 1 percent at CNY45.70 (USD6.33) in Shanghai today. CNGR’s stock [SHE: 300919] ended little changed in Shenzhen, falling 0.2 percent to CNY58.51.

Editor: Futura Costaglione