(Yicai Global) Dec. 14 -- China’s CNGR Advanced Material and Finnish Battery Chemicals will invest EUR1.2 billion (USD1.35 billion) to construct a plant in Finland that manufactures the energy storage material ternary precursor used in electric car batteries to supply the European market.

Unit Zoomwe Hong Kong New Energy Technology and Finnish Battery Chemicals will set up a joint-venture company to run the new factory, the parent firm said yesterday. Zoomwe will hold a 60 percent stake and Finnish Battery the remainder.

The plant, to be located in Hamina, east of Helsinki, will have an annual capacity of 120,000 tons, it said. The first phase, which should be completed in 2024, will have an output of 20,000 tons a year and will cost EUR200 million. The timetable for the rest of construction was not given.

Finnish Battery is owned by mining group Finnish Minerals which can provide the raw materials, such as nickel sulfate and lithium hydroxide, for the production of ternary precursor and cathode materials, Tongren, southwestern Guizhou province-based CNGR said.

There are a number of projects already in place in Europe to boost the production of EV batteries, but few that will supply the raw materials. This project will enable CNGR and Finnish Battery Chemical to establish themselves in the battery raw materials supply chain in Europe.

CNGR is a leading supplier of ternary precursors in China and held 21.8 percent market share last year, according to technology research institute GGII.

CNGR’s share price [SHE:300919] closed down 1.59 percent at CNY166.87 (USD26) today.

Editor: Kim Taylor