(Yicai Global) Oct. 8 -- China's Gem has reached a long-term agreement with multinational mining company Glencore to expand its new energy vehicle batteries business that is hungry for cobalt.

Gem will purchase at least 61,200 tons of cobalt hydroxide from Glencore till 2024, the Shenzhen-based firm said in a statement yesterday, without disclosing financial details.

Domestic supply cannot satisfy Chinese battery makers' demand for cobalt due to the rapid growth of the NEV sector, Gem added. 

Founded in 2001, Gem has become a major supplier of NEV battery raw materials, most of which the firm recycles. In the first half of this year, the company made CNY4.1 billion (USD575.5 million) in revenue from battery materials, making up almost 67 percent of its total tally. 

Established in 1974, Baar-headquartered Glencore trades metals, minerals, as well as energy and agricultural products.

Editor: Emmi Laine