Chinese company GEM has indicated its plans to expand into Europe, with the construction of battery recycling plants and precursor material facilities. The company announced it was considering locations in Hungary and Poland for a recycling plant, aiming to achieve a first phase capacity of 50,000 tonnes per annum. No timeline has been specified.
With an initial recycling European plant, GEM aims to create a circular supply chain with companies such as EcoPro, SK on, Samsung and CATL. Additionally, it wants to construct European precursor material production plants to accompany its recycling facilities. This comes in response to new EU battery regulations, which promotes the localised supply of ternary precursor materials and circularity of battery materials. GEM intends to reach a global recycling capacity of more than 300,000 tonnes by 2026, and 500,000 tonnes by 2030.
However, shareholders have been dismayed at GEMs stock price that has fallen over the past two years. The recycling industry in China, is currently experiencing overcapacity as it waits for the battery market to catch up. Hence, GEM is looking to globalise to areas where the battery recycling space is still expanding.
Abroad, GEM has already collaborated with EcoPro CNG, an EcoPro subsidiary, establishing a battery recycling facility in Pohang, South Korea. Starting operations in 2021, it has a capacity of 20,000 tonnes per annum.
Rho Motion’s battery recycling analyst, Jessie Xu, said ‘Europe’s current…
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Source: Stock Star