Shares in GEM advanced today after the Chinese battery materials producer said that it has started mass production and deliveries of its next-generation ternary power lithium battery precursor materials that offers a safer solution for electric vehicle batteries. The firm also added that it has not been significantly affected by the US’ tariff hikes so far.
GEM’s share price [SHE: 002340] closed up 0.6 percent at CNY5.89 (USD0.80). Earlier in the day it hit 2.2 percent CNY5.98. The stock dropped sharply yesterday to its lowest point since September last year on investor concerns over the US’ Reciprocal Tariffs.
GEM plans to ship about 3,000 tons of the new materials each month and has already secured high-end battery customers in Japan, South Korea and Europe, the Shenzhen-based firm said yesterday.
GEM is the first company in the world to mass produce this new generation of ternary power lithium battery precursor materials, whose microstructure has been optimized without altering any of its effective components, GEM said. The enhancement ensures that batteries made from this material maintain a high energy density, while also improving cycle life and safety, and will consolidate GEM’s position as a global leader in the industry.
Exports of these next-generation battery materials won't be affected by the US tariff hikes and GEM’s overall business has not been impacted by the duties since the beginning of the year, it added, without going into more detail.
Since February, the Trump administration has raised import taxes on Chinese goods twice, resulting in a total increase of 30 percent. And last week, Reciprocal Tariffs were imposed, adding additional duties of 34 percent.
Business was good in the first quarter and the overall capacity utilization rate of GEM's electric car battery materials was over 95 percent, it said.
In order to comply with the restrictions set by the US Inflation Reduction Act and certain EU regulations, GEM has been building factories in Indonesia and South Korea through joint ventures in recent years. Notable overseas partners include South Korean battery maker SK On and battery precursor material producer Ecopro Materials.
