On December 9, GEM announced a partnership
with the Korean company LG Chem for the production of a nickelic ternary
precursor for alternative fuel vehicle batteries. LG Chem formally submitted a
request for a bulk order of nickelic ternary precursor for alternative fuel
vehicle batteries to GEM, which indicates that GEM will begin entirely to
provide LG Chem with nickelic ternary precursor for alternative fuel vehicle
batteries.
According to data, in order to reinforce
its position as the frontrunner of the alternative fuel vehicle battery market,
GEM has decided to create a group dedicated to developing chemical solutions
for LG Chem, thereby creating a new GEM-LG Chem partnership. GEM’s nickelic
ternary precursor product has passed the quality control tests of LG Chem with
flying colors, and with this partnership, the two companies will create an
alternative fuel vehicle battery production line for electric cars all around
the world.
LG Chem and GEM both leading producers of high
quality battery products
The Korean company LG Chem is the worldwide leader
for the production of alternative fuel vehicle batteries and supplies batteries
for alternative fuel vehicles all around the world. According to familiar
sources, between 2020 and 2022, the energy-mass ratio of LG Chem’s batteries is
expected to reach 300Wh/kg, and the energy-volume ratio is expected to reach
700Wh/L, which is enough energy to allow an ordinary car to travel 500
kilometers on a single charge. Between 2023 and 2024, the energy-mass ratio is expected
to increase to 330Wh/kg, which will allow an ordinary car to travel 600
kilometers on a single charge.
The primary business of GEM is recycling
second-hand batteries and producing high-quality products from recycled battery
materials. GEM is currently the primary market competitor for the recycling of
cobalt, nickel, and tungsten
batteries, for the production of ultra-fine cobalt powder, and for the
production of ternary materials for batteries.
This partnership between GEM and LG Chem is
expected to further establish GEM as a the leader of the nickelic ternary precursor
production market, ensure the consistent quality of ternary battery materials
for both companies, and increase the profitability of the entire alternative
fuel vehicle battery industry.
GEM’s stands to monopolize China’s battery
recycling market
Due to the gradual reduction of government
subsidies, the alternative fuel vehicle industry is changing from being a
government-led industry to a market-led industry. This is causing small-scale
producers of alternative fuel vehicles to be bought out or driven out of
business, leaving the majority of the alternative fuel vehicle production in
the hands of large-scale companies. During the past year, the leading three
battery recycling companies have shown constant growth in the ternary material
industry, accounting for 51% of all domestic production in 2019 compared to 37.5%
in 2017. With only three companies accounting for over half of all ternary
material production, the current market trend is clear.
GEM is a frontrunner in the entire industry of
recycled materials in China, and the company follows the motto that good
quality material can be used forever. The company joined the Chinese market in
2010 as a cobalt and nickel recycling operation, and due to its innovative
recycling technology, the company was nominated as a runner up for the China’s
technological progress prize. Since then, GEM has become a leader in the
industry of recycled cobalt, nickel, and tungsten, and the company produces 60%
of all of China’s ultra-fine cobalt and nickel powder.
For more information on China’s energy market, please check our China
Li-ion Battery E-News.