(Yicai Global) May 18 -- South Korea’s SK Innovation will invest CNY2.6 billion (USD404.1 million) together with units of China Baoan Group and Eve Energy to build a factory in eastern Jiangsu province to supply electric vehicle battery makers with the raw materials they need as demand surges.

The high-nickel ternary cathode materials facility, named Changzhou BTR New Material Group, will have an annual capacity of 50,000 tons and should be completed within two years, the two Chinese partners said yesterday.

Baoan Group’s battery raw materials supplier BTR New Material Group will hold a 51 percent stake in the joint venture, battery maker Eve Energy’s subsidiary Eve Asia will have 24 percent and Seoul-based NEV battery manufacturer SK Innovation the remainder.

The collaboration between upstream suppliers and downstream producers will ensure a stable supply of raw materials, reduce price fluctuations and improve competitiveness, the pair said.

Shenzhen-based Baoan Group is also planning to invest CNY762 million (USD118.4 million) to build a production line for lithium battery anode materials in Tianjin, near Beijing, the real estate-to-high tech conglomerate said the same day. The new facility will have a yearly production capacity of 40,000 tons and should begin operations in the first half next year.

Eve Energy’s share price [SHE:300014] closed down 0.69 percent today at CNY101.20 (USD15.74). Baoan Group [SHE:000009] finished the day up 1.02 percent at CNY9.95 (USD1.55).

Editor: Kim Taylor