Shanghai (ZXZC)- Ganfeng Lithium Group Co., Ltd. (Ganfeng Lithium), one of the world’s top producers of EV-used lithium, said its board of directors on May 12 approved the proposal on a new investment deal to be signed by its subsidiary, Jiangxi Ganfeng LiEnergy Technology Co., Ltd. ("Ganfeng LiEnergy").

According to the statement, Ganfeng LiEnergy will sign an agreement with the municipal government of Xiangyang city, Hubei province to build in the city a lithium battery production and R&D base.

Photo credit: Ganfeng Lithium

The company plans to pour 2.5 billion yuan in this project, at least 1.25 billion yuan of which will be invested in fixed assets. Covering an area of around 240 mu (160,000 square meters), the project is set to be built in several phases, of which the first phase will be constructed into a production and packaging base for new energy vehicle (NEV)-used cells and battery packs with an annual production capacity of 5GWh.

The aforesaid base is scheduled to start operation at the end of this year.

Ganfeng Lithium said this investment will help to increase the production scale, market share, and R&D capabilities of its lithium battery products, promote the optimization and upgrading of the company's lithium industry chain structure, enhance the its core competitiveness, and align with the company's integrated development strategy for the upstream and downstream.