(Yicai) Feb. 2 -- Ronbay New Energy Technology and LG Energy Solution have agreed to jointly develop and produce lithium battery cathode materials for the power and energy storage markets in Japan, South Korea, Europe, and the United States.

Ronbay recently signed a deal with the South Korean battery giant to co-develop three new lithium battery cathode materials, including lithium ferromanganese phosphate, the Ningbo-based company said late yesterday. The partners will also work toward production and global market sales on a large scale, it added.

The three new materials have a higher energy density, better low-temperature resistance, and safety compared with common cathode materials on the market, Ronbay noted. Their production process can significantly reduce manufacturing costs and carbon emissions, it pointed out.

The agreement marks the recognition of Ronbay's ability to develop new lithium battery cathode materials and its market position by a global power battery giant, the Chinese firm said. Its products will also be used in the electric vehicles of LG Energy's many international car manufacturing clients, improving Ronbay's global customer structure, it noted.

Ronbay has completed its plant setup for ternary cathodes, precursor materials, and waste battery recycling in South Korea. Last August, the company said it would spend CNY2.6 billion (USD366.3 million) to build two battery material factories in Chungju to better meet demand from local battery makers and expand its overseas footprint.

The first plant will produce high-nickel ternary cathodes with an annual output of 40,000 tons, the first large-scale overseas factory built by a Chinese cathode material firm. The second will make lithium ferromanganese phosphate cathodes with an output of 20,000 tons a year.

Shares of Ronbay [SHA: 688005] sank 4.9 percent to CNY26.72 (USD3.74) apiece today, with the wider Shanghai market coming off 1.5 percent. The stock is down by a third since the end of last year and 82 percent from a closing high of CNY147.50 (USD20.65) in July 2022.

Editor: Martin Kadiev