China's Gem Delivers Ultra-High Nickel NCM Precursors

GEM

Breakthrough in NCM Technology Strengthens China’s Battery Supply Chain

Chinese battery materials firm Green Eco-Manufacture (GEM) has achieved a major milestone by delivering its first ultra-high nickel content NCM precursors. The delivery, made by its subsidiary Jingmen Gem New Material on 7 April, marks the world’s first large-scale production of 9-series NCM precursors. These materials play a critical role in high-energy lithium-ion batteries, particularly for electric vehicles.

Gem plans to produce 3,000 tonnes per month of 9-series NCM precursors. This follows its successful commercialization of 8-series high nickel content precursors in 2022, signaling its leading position in the high-nickel battery materials market.

Indonesia Operations Drive Nickel Supply Security

To secure raw material feedstock, Gem has built 150,000 t/yr of mixed hydroxide precipitate (MHP) capacity in Indonesia. In the first quarter of 2025, Gem shipped 25,000 tonnes of MHP, achieving over a 95% capacity run rate. The firm also aims to boost its high-nickel precursor production in Indonesia to 50,000 t/yr.

In November 2024, Gem signed a key agreement with PT Vale Indonesia (PTVI) to co-develop a high-pressure acid leaching (HPAL) plant in Central Sulawesi. The facility will produce 66,000 t/yr of nickel metal equivalent MHP, further reinforcing Gem’s supply chain for battery-grade nickel.

China Boosts Imports of Indonesian Nickel

China’s dependence on Indonesian nickel continues to deepen. Imports of MHP from Indonesia surged 73% year-on-year to 258,709 tonnes in the January–February 2025 period. This growth stems from efficient production at Chinese-owned facilities in Indonesia, ensuring a steady flow of critical battery inputs despite global supply chain volatility.

The Metalnomist Commentary

Gem's advancement in ultra-high nickel NCM precursors reflects China’s growing command of the battery materials value chain. By integrating upstream supply from Indonesia and advancing precursor technologies, China is setting the pace in next-generation EV materials while reducing its dependence on traditional suppliers.