(Yicai) April 9 -- Shares of Changyuan Lico jumped after the affiliate of metals giant China Minmetals said it will form a joint venture with a unit of Toyota Motor and others to recycle and reuse car batteries.

Shanghai-listed Changyuan Lico [SHA: 688779] ended the day 6.2 percent higher at CNY6.02 (US 83 cents) after surging as much as 7.2 percent earlier.

The JV will create a program of battery cascade utilization to reuse decommissioned electric vehicle batteries in less-demanding user scenarios or recover key chemicals from waste batteries to establish a complete industrial chain, the Hunan province-based maker of battery cathode materials announced yesterday without disclosing the shareholding ratio, production capacity, or other project details.

The firm headquartered in central China will give cash to the JV whose other equity holders are Toyota Motor China Investment, as well as a Chinese unit of Japanese chemicals trader Meiwa, and another subsidiary of Minmetals. The JV will make full use of shareholders’ advantages in battery supply, recycling, and market channels, it added.

Changyuan Lico produces both ternary and lithium iron phosphate-based cathode materials, counting renowned battery manufacturers Contemporary Amperex Technology and BYD as some of its clients. It already has a battery recycling plant with an annual capacity of 5,000 tons, per its website.

Editor: Emmi Laine