(Yicai Global) July 21 -- Chinese battery recycling giant GEM has received approval from Switzerland’s bourse regulator for a secondary listing in Zurich.

Six Exchange Regulation has conditionally approved GEM to list global depositary receipts on the Six Swiss Exchange, the Shenzhen-listed firm said in a statement late yesterday. China’s securities regulator gave its approval on June 26 for GEM to issue as many as 478 million new Chinese mainland shares, which will become about 47.8 million GDRs.

GEM has said the proceeds of the share sale will go to fund nickel-ore projects abroad, including the construction of a ternary precursor facility in Hungary to supply European clients, as well as the development of overseas battery materials projects, the firm’s internationalization, and to supplement working capital.

The company’s planned listing in Switzerland is still subject to approval by the Six Exchange Regulation’s prospectus office, GEM added.

Shares of GEM [SHE: 002340] ended 0.2 percent up in Shenzhen today at CNY9.16 (USD1.35) apiece, after earlier jumping by as much as 4.2 percent.

In a separate statement yesterday, GEM also said the company and client XTC New Energy Materials Xiamen will jointly develop four types of new generation precursor materials in accordance with the technical requirements and product performance indicators raised by XTC. Bulk supply of up to 540,000 tons will begin next year, with the annual figure increasing every year until 2027.

GEM did not mention any financial numbers for the new products' development and bulk supply. It said the project is conducive to achieving annual precursors sales of 500,000 tons in 2026. Last year, the firm shipped 91,000 tons of ternary precursors.

XTC is one of the main domestic suppliers of ternary lithium-ion battery cathode material, mostly made from ternary precursors. Panasonic, Samsung, ATL, and BYD are among its major clients. Its stock [SHA: 688778] ended 0.7 percent higher today at CNY164.20 (USD24.27).

Editor: Futura Costaglione