By Yifan Wang

Tesla's battery supplier Contemporary Amperex Technology Co. is planning an investment of 32.0 billion yuan (US$4.96 billion) to build a plant to recycle and produce battery chemicals and other components in central China.

The new plant, to be located in Hubei province, will include facilities for recycling and producing a variety of battery materials, said CATL, the world's largest electric car battery maker.

CATL will jointly build a number of units to produce acidic raw materials as part of the larger production base with Hubei Yihua Chemical Industry Co., a manufacturer and distributer of chemical products, CATL said Tuesday.

Global battery makers have been rushing to expand capacity and secure raw materials such as lithium and nickel in a bid to capture a larger share in the booming market for new-energy vehicles.

Last month, CATL agreed to acquire Canada's Millennial Lithium Corp. for more than $300 million. That deal came after the firm's earlier moves to increase shareholding in Neo Lithium Corp., as well as to invest in North American Nickel Inc. and an Indonesian nickel project.

Write to Yifan Wang at yifan.wang@wsj.com

(END) Dow Jones Newswires

10-12-21 0643ET