(Yicai Global) Sept. 27 -- CNGR Advanced Material, a leading Chinese maker of lithium-ion battery cathode precursor, has agreed to work on lithium materials with a unit of South Korean conglomerate SK Group in a tie-up that will see them set up a research and development joint venture.

Under a deal signed yesterday with SK Ecoplant, the pair will cooperate on various projects, including the production of ternary precursor cathode materials and battery-grade lithium carbonate, as well as the R&D of battery-related and wastewater treatment technologies and precursor materials production, Changsha-based CNGR said today.

They also will jointly promote the end-of-life battery process business to ensure the supply of battery recycling equipment and raw materials, CNGR added, without revealing any financial details related to the partnership.

The deal will help CNGR make use of its industrial advantages, accelerate the international layout of its lithium battery materials business, improve its positioning in the whole industrial chain from mineral resources refining to waste materials recycling, and consolidate its leading position in the industry, the firm noted.

CNGR, which includes Tesla, LG Chemical, and Samsung SDI among its customers, was expected to have ternary precursor capacity of more than 200,000 tons at the end of 2021 and 500,000 tons by the end of 2023, executives told investors last September.

Shares of CNGR [SHE: 300919] closed down 0.3 percent today at CNY88.74 (USD12.40) each.

Editor: Futura Costaglione