The giant Chinese manufacturer of electrolytes and chemical materials for lithium batteries, Guangzhou Tinci Materials Technology, plans to build two factories abroad, one in Morocco and the other in the United States.
In a statement released this week, Tinci announced that its Singapore-based subsidiary will invest up to $280 million to set up a project company in Morocco that will specialize in the production and sale of lithium-ion battery materials.
The Chinese company pointed out that Morocco has abundant resources of phosphorite ore, and having a plant in the North African country will also help the company better serve and explore the European market.
The same source specifies that Tinci has also started the preliminary preparation phase, including the feasibility study and the environmental impact assessment, for a new lithium battery electrolyte plant with an annual production capacity of 200,000 tons in Texas.
Upon completion of construction within 30 months, the Texas plant, which will comply with US Inflation Reduction Act restrictions on supplier location, will meet demand for battery electrolytes in North America and will provide Tinci’s international customers with localized sourcing benefits as well as time and quality guarantees, the company added.
According to its annual report, Tinci’s revenue more than doubled to 22.3 billion yuan, or $3.1 billion, last year due to strong demand. Revenue from its lithium battery materials business accounted for 93% of the total. Net profit, meanwhile, rose nearly 160% to around 5.7 billion yuan ($789.7 million).
Additionally, shares of Tinci closed 1% higher at 40.71 yuan ($5.62) on the Shenzhen Stock Exchange today, as the stock is down 7.2% since inception. of the year.