Shanghai (Gasgoo)- On June 13, two Chinese power battery manufacturers, SVOLT and EVE Energy, signed an agreement with Sichuan New Energy Power Company Limited (“CNDL”) to establish a joint venture for a lithium salt manufacturing project, within the framework of efforts to boost the development of the lithium battery industry in Sichuan Province.
According to CNDL’s announcement, the new joint venture will have a registered capital of 750 million yuan ($111.062 million) and its stakes will be split 51:24.5:24.5 between CNDL, EVE Energy and SVOLT respectively.
Signing ceremony; photo credit: SVOLT
The project will involve a total investment of 1,491.21 million yuan ($220.822 million). Under this project, production lines with an annual capacity of 15,000 tons of battery-grade lithium hydroxide and 15,000 tons of battery-grade lithium carbonate, as well as relevant supporting facilities will be constructed. in Deyang-Aba eco-economic industrial park.
All construction work should be completed in two years.
As one of the main raw materials of electric batteries, lithium salts have been steadily rising in price due to multiple factors such as demand, supply and development period. SVOLT said it attaches great importance to the supply of lithium resources. In 2017, it secured stakes in Australian lithium miner Pilbara Minerals through its affiliate. In the domestic market, it invested in Guangxi Tianyuan New Energy Materials Co., Ltd. and Hunan Yongshan Lithium Co., Ltd.