GEM establishes partnership with LG Chem for nickelic ternary precursor supply 01-03-2020

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.

Subscribe to our Newsletter


Next Press