Dazhong Mining and Wanhua Chemical plan to build an annual 200,000-ton lithium salt project

(Source: Zhonghua News Network)

Dazhong Mining announced on March 23 that it intends to collaborate with Wanhua Chemical (Sichuan) Battery Materials Technology Co., Ltd. to invest in the construction of a 200,000-ton lithium salt project in the Meishan High-tech Industrial Park, Sichuan.

The overall planned capacity of the project is 200,000 tons of lithium salt, divided into three phases: Phase I with an annual production of 30,000 tons, Phase II with an annual production of 70,000 tons, and a long-term plan for Phase III with an annual production of 100,000 tons. The total investment for Phases I and II is 2.2 billion yuan, while the investment for Phase III will be developed through cash flow generated from the production of Phases I and II.

The announcement stated that to promote the implementation of the project, Dazhong Mining intends to sign a joint venture agreement with Wanhua Battery Materials Company to jointly fund the establishment of a joint venture company as the investment and construction entity for the Phase I 30,000-ton lithium salt project. The registered capital of the joint venture company is 300 million yuan, of which Dazhong Mining will contribute 240 million yuan in cash (holding 80%), and Wanhua Battery Materials Company will contribute 60 million yuan in cash (holding 20%).

According to the announcement, currently, Dazhong Mining’s Sichuan Jiada Lithium Mine first mining area (which only accounts for one-tenth of the exploration rights area) has a recorded resource amount of 1.4842 million tons of lithium carbonate equivalent, with a Phase I raw ore mining scale of 2.6 million tons/year, and once fully operational, the annual raw ore mining can produce about 50,000 tons of lithium carbonate, providing a solid resource foundation for lithium.

Dazhong Mining stated that Wanhua Chemical, as a global leader in the chemical industry, is continuously accelerating the construction of projects related to lithium iron phosphate and other battery materials, actively creating its second growth curve. The collaboration with Wanhua Battery Materials Company will leverage Wanhua Chemical’s advantages in R&D, technology, and management in the chemical field to build a technologically advanced lithium salt plant; establish a stable supply and demand relationship to jointly resist market fluctuations, create a healthy and high-quality sustainable development ecosystem, and further strengthen the company’s competitive position.

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