(Yicai Global) March 15 -- Jingmen GEM, a subsidiary of Chinese metal recycling firm GEM, has won a standing order to supply nickel-cobalt-manganese hydroxide to a lithium battery materials maker.

Jingmen GEM will send 29,300 tons of the material to Ningbo Ronbay Lithium Battery Materials before the end of 2021, the supplier said in a statement that did not disclose the agreement's financial details. It will deliver 9,300 tons this year and 10,000 each in 2020 and 2021.

Nickel-cobalt-manganese hydroxide is used to make cathodes in lithium batteries, primarily for electric car powertrains and power tools. It is a cheaper alternative to other cathode materials as it is typically made up mostly of nickel, reducing the amount of the more expensive cobalt needed. It is a popular choice in electric vehicles thanks to its low heat discharge.

Ronbay was one of China's first companies to begin mass-producing the NCM composite, while GEM has become one of the world's largest suppliers over the past two years, according to the statement. Their coming together will help meet rising demand and provide GEM with a fuller industrial chain covering battery recycling, raw material reproduction and materials manufacturing, it added.

Editor: James Boynton