Shanghai (ZXZC)- CATL is about to build a joint venture with Yongxing Special Materials Technology Co.,Ltd. (called “Yongxing Materials” for short), a Chinese steel products producer, for the investment in a lithium carbonate manufacturing project, Yongxing Materials announced on Jan.26.

Photo credit: CATL

According to the announcement, the joint venture will be incorporated in Yichun, Jiangxi province with a registered capital of 1 billion yuan ($157.565 million). Its line of businesses will include mining, mineral processing, lithium carbonate smelting, as well as sales and production of lithium salt. The joint venture will be 70/30 held by CATL (or its affiliated firm) and Yongxing Materials (or its affiliated firm) respectively.

The joint venture will build facilities with the capability of smelting 50,000 tonnes of lithium carbonate per year, and the annual capacity of 6 million tonnes for both mining and mineral separation.

The aforesaid project will involve a total investment of 2.5 billion yuan ($393.912 million) and will be worked up in two phases. The first phase is designed to have a yearly smelting capacity of 30,000-tonne lithium carbonate with construction of mining and mineral separation facilities to start as appropriate. 

CATL or its affiliated company will be responsible for supplying the joint venture with raw materials. Besides, the joint venture should prioritize CATL or its designated parties regarding supply of lithium carbonate products.

Yongxing Materials, which specializes in making nickel alloy and stainless steel wire rods and bars, currently has facilities with an annual manufacturing capacity of 20,000-tonne lithium salt completed and under construction. The company said its lithium salt products will be supplied to CATL and its designated parties with priority.