Shanghai (ZXZC)- Sunwoda Electronic Co., Ltd. ("Sunwoda") on Dec. 7 inked an agreement with the municipal government of Yichun city, Jiangxi province to form the strategic cooperation on building an industrial base dedicated to the production of battery raw materials, and the recycling of lithium ion batteries and related core materials, according to a post on Sunwoda's WeChat account.

According to Sunwoda's announcement, the yet-to-be-built base involves a total planned investment of 16.5 billion yuan ($2.365 billion). It will be constructed in several phases to achieve an annual production capacity of 50,000-tonne lithium carbonate and 300,000-tonne cathode materials, and the capability of recycling and processing 50GWh lithium ion batteries annually.

Photo credit: Sunwoda

Besides, Sunwoda will build a joint venture with Yichun city's local mining company and a state-owned firm backed by the city’s municipal government to support the construction of the new project.

Sunwoda said signing for the Yichun project brought the company one step closer to building its own controllable chain of core battery raw materials, in a bid to meet the ever-climbing demands for battery production capacity.

On Nov. 14, Sunwoda celebrated its public listing on the SIX Swiss Exchange by issuing global depositary receipts (GDRs), marking a milestone for the company's global strategy advancement.

The company said the proceeds will be mainly used to boost its global businesses, step up R&D capability, and supplement working capital, so as to further expand its global markets and enhance its brand's competitiveness on the world's stage.