(Yicai Global) June 28 -- Guangzhou Tinci Materials Technology, a major Chinese supplier of electrolytes and electrolyte chemicals for lithium batteries, plans to build two plants overseas, one each in the United States and Morocco.

Tinci has begun the pre-preparation stage, including the feasibility study and environmental impact assessment, for a new lithium battery electrolyte factory with annual production capacity of 200,000 tons in Texas, the Guangzhou-based company said in a statement yesterday.

After construction is completed in 30 months, the Texas plant, which will comply with the US Inflation Reduction Act’s restrictions on the supplier’s location, will meet demand for battery electrolytes in North America and provide Tinci’s overseas clients with advantages related to localized supply and time and quality guarantees, the firm added.

In a separate statement on the same day, Tinci said its Singapore unit will invest as much as USD280 million to set up a project company in Morocco that will produce and sell lithium-ion battery materials.

Morocco has ample phosphorite ore resources, Tinci said, noting that having a plant in the north African country will also help the firm better serve and explore the European market.

Tinci’s revenue more than doubled to CNY22.3 billion (USD3.1 billion) last year because of strong demand, according to its annual report. Revenue from its lithium battery materials business accounted for 93 percent of the total. Net profit soared nearly 160 percent to about CNY5.7 billion (USD789.7 million).

Shares of Tinci [SHE: 002709] closed 1 percent up at CNY40.71 (USD5.62) apiece in Shenzhen today. The stock is down 7.2 percent this year.

Editor: Futura Costaglione