(Yicai Global) Jan. 30 -- Contemporary Amperex Technology’s stock price jumped after the world’s biggest maker of lithium-ion batteries said it plans to spend as much as CNY23.8 billion (USD3.5 billion) building an industrial park that will recycle battery raw materials.

After surging 8.5 percent this morning, CATL [SHE: 300750] ended up 4.1 percent today at CNY470.65 (USD69.69) a share, giving the Ningde-based company a market capitalization of CNY1.15 trillion (USD170.1 billion).

CATL announced yesterday that Guangdong Brunp Recycling Technology, in which it owns a 65 percent stake, will be responsible for the investment, construction, and operation of the new industrial park. To be built in Foshan in China’s southern Guangdong province, the project will have an annual processing capacity of 500,000 tons.

The industrial park will turn out cathode materials for lithium iron phosphate batteries and ternary lithium batteries, as well as recycled graphite for battery cell anode materials, CATL noted, adding that construction will take four years.

As the market for new energy vehicles grows, the number of spent batteries is expanding, CATL said, noting that recycling and reuse will be an important source of raw materials. The new project will guarantee CATL’s supply of lithium cell raw materials and perfect its overall positioning in the lithium battery industrial chain, it pointed out.

In October 2021, Guangdong Brunp Recycling said it would invest CNY32 billion with a local partner in Yichang, Hubei province to build a large joint-venture industrial park for the recovery and reuse of waste power batteries. The project is expected to come on stream by 2027.

Editor: Futura Costaglione