(Yicai) Aug. 19 -- Ganfeng Lithium’ shares rose after the Chinese battery materials giant said it intends to invest USD500 million to build a lithium battery plant in Türkiye with a local partner to better serve overseas clients.

Ganfeng Lithium [HKG: 1772] closed 4.7 percent higher at HKD17.76 (USD2.28) in Hong Kong today. Its Shenzhen-listed stock [SHE: 002460] rose 0.7 percent to CNY26.54 (USD3.72).

Ganfeng Lithium’s subsidiary Ganfeng LiEnergy Technology and Yiğit Akü, Türkiye’s largest manufacturer, exporter, and recycler of lead-acid batteries, will set up a joint venture in the Middle Eastern country to invest in, build, and operate a lithium battery facility, its Xinyu-based parent company announced on July 16.

The plant will have an annual production capacity of 5 gigawatt-hours of both battery cells and battery packs, Ganfeng Lithium said, without revealing any further details about the project, as Ganfeng LiEnergy and Yiğit Akü still need to sign a final investment agreement.

The project will help Ganfeng Lithium establish long-term strategic cooperation with Yiğit Akü, jointly develop lithium battery products, serve overseas customers, and promote further international business cooperation, it pointed out.

In addition to the plant, the JV plans to build a battery research and development center for advanced lithium battery technologies and products, such as solid-state batteries, high-power batteries, and batteries that can power marine and aerospace equipment, Ganfeng Lithium said.

Ganfeng Lithium mainly develops lithium mineral resources but has recently expanded in the downstream reaches of the industry. Last year, 74 percent of its revenue came from the upstream battery materials business and 23 percent from the sale of lithium battery cells and packs, according to the company’s latest annual report.  

Editor: Futura Costaglione