(Yicai Global) March 28 -- Chinese battery materials supplier Hunan Changyuan Lico is teaming up with French oil refiner Axens Group to construct a plant that makes the ternary precursors and cathode materials used in electric car batteries in France which will supply the European market.

The pair will build a factory to mass produce ternary precursors and cathode materials for lithium batteries with medium to high-nickel content, Changyuan said yesterday, citing the Memorandum of Understanding signed with Rueil-Malmaison-based Axens.

Changyuan, which is a subsidiary of mining giant China Minmetals Corp., will contribute cash and technology, the Changsha, central Hunan province-based firm said. No details were given about the investment amount, the shareholding ratio or the production capacity.

Axens is a subsidiary of the Institute of Petrole France, which has production bases in many countries and strong manufacturing capacity as well as project operation capabilities.

Changyuan has an annual production capacity of 30,000 tons of ternary lithium precursors and 180,000 tons of cathode materials, according to the company's website.

By building factories overseas with foreign partners, Chinese battery materials producers can try to circumvent US trade barriers. GEM is also planning to invest up to USD931 million to build a battery materials joint venture plant in South Korea to supply the US and European markets, the Xiamen, southeastern Fujian province-based company said recently.

Changyuan’s share price [SHA:688779] closed down 1 percent at CNY14.95 (USD2.17) today.

Editor: Kim Taylor