Yongxing Materials joins hands with CATL to invest in lithium carbonate project

On January 27, Yongxing Materials issued an announcement stating that the company and CATL will establish a joint venture in accordance with the provisions of the "Joint Venture Agreement", and will use the joint venture as the main body to invest in the construction of a lithium carbonate project. The total investment amount of the project will not exceed 2.5 billion yuan, and it is planned to build an annual production capacity of 50,000 tons of lithium carbonate.

It is understood that the first phase will first invest in the construction of a 30,000-ton lithium carbonate production capacity project with a total investment of no more than 1.5 billion yuan; after the first phase project reaches full production, the remaining capacity construction will be started. In addition, Yongxing Materials and CATL will also cooperate on Yongxing Materials' lithium carbonate products.

Regarding the background of this cooperation, Yongxing Materials stated that the company has been planning its lithium-ion new energy business since 2017, forming a dual-core business development pattern. It plans to build a 30,000-ton battery-grade lithium carbonate production capacity in Yifeng County, Jiangxi Province, and has achieved technological innovation and management innovation in mica lithium extraction by relying on the management and innovation advantages of a leading special steel new material enterprise, solving many problems in the development of lithium-ion new energy business. The first phase of the annual production capacity of 10,000 tons of battery-grade lithium carbonate was completed in July 2020, and the technology, quality and cost of lithium salt production have been fully recognized by downstream leading enterprises. In February 2021, the company started the construction of an annual production capacity of 20,000 tons of battery-grade lithium carbonate.