(Yicai Global) Dec. 29 -- Chinese fine chemicals maker Tinci Materials Technology will spend CNY820 million (USD129 million) building a new plant to increase its capacity to produce lithium battery electrolyte materials.

The plant, which will be built in Zhaoqing in Guangdong province, will have an annual capacity of 200,000 tons of lithium battery electrolytes and is scheduled to be completed in 12 months, Guangzhou-based Tinci said late yesterday.

The project aims to consolidate Tinci’s leading position in the electrolyte market, as well as meet demand from clients nearby, while cutting transport costs, the company said.

Battery giant Contemporary Amperex Technology announced on Feb. 2 that it will spend CNY12 billion to set up a battery plant with an annual capacity of 30 gigawatt-hours in Zhaoqing. The factory will be completed by 2023, but half of the capacity is likely to come on stream as early as next June.

Shares of Tinci [SHE: 002709] closed little changed today at CNY118 (USD18.52) apiece, a gain of 0.1 percent. The broader Shenzhen market came off 1.2 percent. Tinci’s stock has soared 93 percent this year.

Tinci is a leading supplier of lithium battery electrolytes with 29 percent market share last year, ranking first in China. Its electrolyte shipments are likely to stay between 120,000 tons and 140,000 tons in 2021 and soar to almost 300,000 tons next year, according to a research report by Minsheng Securities.

Editor: Futura Costaglione