HOME > News

GEM, Weiming, and Yongqing to Jointly Invest RMB 1.3 Billion in Green Projects in Wenzhou

published: 2022-10-04 9:30

GEM announced on September 28 that it together with Weiming Environment Protection and Yongqing Technology have signed two separate agreements with the government of Wenzhou’s Dongtou District and the management authority of the Wenzhou Hi-Tech Zone. The one with the government of Dongtou District is an investment framework agreement for the development of a low-carbon industrial park that specializes in the manufacturing of battery materials. The one with the management authority of the Wenzhou Hi-Tech Zone is a strategic cooperation agreement for the development of an industrial park that provides solutions for a green circular economy. GEM is not only a major Chinese supplier for materials used in NEV power batteries but also one of the world’s largest recyclers of Li-ion batteries. In recent years, GEM has been strengthening its presence across various industrial sectors related to green technologies. Dongtou District comprises 168 islands off the coast of China’s Zhejiang Province. It is under the administration of the prefecture-level city of Wenzhou.

In its notice about the two agreements, GEM stated that the battery material industrial park and the green circular economy park will entail estimated investments of around RMB 10.8 billion and RMB 2.2 billion respectively. The battery material industrial park will be located in Island Group A of Dongtou District and span an area of around 950 mu. These islands will be turned into “green manufacturing islands” that simultaneously serve as a demonstration project, a R&D center, and a production base.

Regarding the demonstration project, GEM and its partners will build battery material production facilities featuring low-carbon manufacturing processes. As for the R&D center, a Sino-Indonesian research HQ and a logistics hub for distributing raw materials from Indonesia will be set up within the park. The research HQ will engage in innovations related to battery designs and material solutions.

Turning to the production base, GEM will be leading the development of the followings: 600,000 tons per year of production capacity for NCM sulfuric acid crystals and 50,000 tons per year of production capacity for ultrahigh-nickel ternary precursors. Weiming will be leading the development of 45,000 tons per year of production capacity for high-purity lithium carbonate. Also, tenders have been issued for facilities that manufactures other kinds of battery materials such as electrolytes (100,000 tons per year), graphite anodes, and separators.

Looking at the green circular economy park, it will accommodate facilities for recycling decommissioned NEV power batteries. Located in Longwan District, the green circular economy park will span an area of around 300 mu. It will possess 100,000 tons per year of processing capacity for decommissioned NEV power batteries and 100,000 units per year of processing capacity for decommissioned vehicles. Facilities related to battery materials will also be built there. Once completed and in operation, the entire project can generate as much as RMB 12 billion in annual output value.

Regarding GEM’s partners in these two projects, Weiming is a waste management company that processes solid wastes and treats landfill leachates. It also operates thermal power plants that burn wastes. Yongqing, which was established in 2018, supplies nickel and battery materials. Besides manufacturing and sales, Yongqing is also involved in R&D, processing services, and technical support services. GEM said the aim behind these joint projects is to accelerate the growth of the new energy industry in Wenzhou and form a local battery industry chain of global significance.

GEM also said that these projects will synergize its and its partners’ respective advantages through in-depth collaborations. The two parks will be built according to the specifications of a state-of-the-art petrochemical industrial park. Hence, the supporting infrastructure that GEM and its partners will be building is similar to the kinds designed for LNG power stations, sulfuric acid production plants, petrochemical port terminals, etc. GEM expects that the two parks will achieve world-class status with respect to the provisioning of fine chemical products and solutions for a green circular economy. They will be serving China’s and other countries’ new energy industries.

GEM will play the role of cornerstone enterprise in these two parks. It will fully utilize the local infrastructure in order to establish a globally competitive base for the production of chemical materials. This, in turn, will extend the company’s influence in the global supply chain for new energy technologies. Finally, GEM expects that the two green projects in Wenzhou will improve its core competitiveness and profitability. They thus fit into the company’s long-term growth strategy and align with the interests of its shareholders.

This article is a translation of a Chinese article posted by TrendForce. It contains information that is either sourced from other news outlets or accessible in the public domain. Some Chinese names are transcribed into English using Hanyu Pinyin.

announcements add announcements     mail print