(Yicai Global) March 30 -- Tinci Materials, a Chinese producer of lithium-ion battery materials, is partnering with German specialty chemicals maker Lanxess to make lithium battery electrolyte for clients in Europe.

Tinci Materials will spend up to EUR8 million (USD9.4 million) to help Saltigo, a unit of Lanxess, transform production lines and renovate its workshop, a process that will cost between EUR6.3 million and EUR8.19 million and is expected to wrap up before year-end, the Guangzhou-based company said today.

The pair agreed that Tinci Materials will buy at least 10,000 tons of electrolyte per annum, starting from next year, with delivery points designated in Germany. 

The tie-up can help the Chinese company quickly achieve scale production of lithium-ion battery electrolyte in Europe and offer “close-by supply” to key customers, it said.

Tinci Materials had annual output of 106,000 tons of electrolyte for lithium-ion batteries and an annual 350,000 tons under construction as of the end of 2020. Its China market share has risen to 32 percent, and its global market share has reached about 20 percent.

Its well-known customers include Northvolt, BMW, and Tesla's Berlin plant, which will soon be completed and put into production, according to publicly available information.

In addition, Tinci Materials announced last April that it plans to build a lithium battery electrolyte plant with annual output of 100,000 tons in the Czech Republic.

Shares in Tinci Materials [SHE:002709] closed up 1.4 percent today at CNY82.21 (USD12.52).

Editor: Tom Litting