Chinese recycler GEM in secondary listing on SIX Swiss Exchange

The Chinese recycler and cathode material company GEM has listed so called Global Depositary Receipts on the Swiss stock market, SIX. The listing enables the company, which is one of the largest recyclers of lithium-ion batteries in the world, to easier tap the Western capital market for funding of its material and recycling projects in Hungary as well as its nickel projects in Indonesia.

GEM is one largest battery recycling companies in the world as well as a very large producer of cathode materials. The company has for several years been working closely with the South Korean cathode manufacturer Ecopro and the companies are now working together on establishing a European presence in Hungary which also will include reuse and recycling of batteries. Through the GDR listing it will now be easier to raise regional funds for the projects.

The company is also looking to increase its funds for investments in Indonesia where it alongside companies like CATL and Tsingshan Holdings has invested mining projects that will generate nickel and cobalt resources.

The listing of GEM will most probably make the company more visible in the West as it now will be more accessible to invest in. It will also gain access to local funds which may facilitate a European expansion.

GEM which primarily has been producing NMC, NCA and LCO materials just recently shipped its first batch of LFP cathode material. The new capacity which initially is 20,000 tonnes and later will be scaled to 100,000 tonnes, will also involve recycling of LFP material and batteries.

GEM has been growing rapidly the last years and had 2021 an operating income of 19.301 billion yuan ($2.8Bn), a year-on-year increase of 54.83%, while the net profit is 923 million yuan or $136.5M, a year-on-year increase of 123.82%.