(Yicai Global) Feb. 28 -- Ganfeng Lithium Group, a major Chinese supplier of lithium battery materials, said it will build a new plant to make lithium batteries, power packs, and power systems for industrial vehicles reportedly worth CNY7 billion (USD1 billion) a year.

The Suzhou plant will have an annual capacity of 5 gigawatts of power batteries and 10 GW of power battery systems, a combination of batteries, battery management and thermal management systems, sensors, and ancillary devices, the Xinyu-based firm said via WeChat late yesterday. It did not specify the cost or construction schedule.

Suzhou Daily reported today that the new plant’s output value will likely be CNY7 billion a year when it goes into operation.

Suzhou in Jiangsu province will become Ganfeng Lihtium's power battery production base and regional headquarters in East China, the firm added.

Shares of Ganfeng Lithium [SHE: 002460] closed down 0.7 percent at CNY72.40 (USD10.42) each in Shenzhen today. Its Hong Kong-listed stock [HKG: 1772] fell 4.5 percent to HKD54.70 (USD6.97).

Ganfeng Lithium has been expanding into lithium battery production in recent years. Last August, the company announced it would invest CNY21.3 billion (USD3.1 billion) in several projects in Xinyu to increase capacity. Last month, it unveiled two more capacity expansion plans worth CNY15 billion in Chongqing and Dongguan.

Editor: Futura Costaglione