(Yicai Global) Feb. 28 -- Guangdong Weihua Corp. will process lithium ore for the lithium business affiliate of Albemarle Corp. in the US over the next three years through its wholly-owned lithium business subsidiary in Sichuan province of southwestern China.
The unit, Sichuan Zhiyuan Lithium Co., has signed a framework agreement for contracted processing of lithium ores with Rockwood Lithium (Shanghai) Co., Guangdong Weihua, headquartered in Guangdong province in southeastern China, announced yesterday.
Rockwood Lithium (Shanghai) Co. is the wholly-owned subsidiary of US-based Albemarle Corp., a leading world provider of lithium salts and other resources of the element, per the announcement.
Zhiyuan Lithium has undertaken to provide Rockwood Lithium (Shanghai) with at least 6,875 tons of lithium salts, including lithium hydroxide and lithium carbonate, throughout 2018, and at least 10,000 tons of these lithium compounds per year between 2019 and 2020, under the agreement, the announcement said.
Rockwood Lithium (Shanghai) has pledged prompt provision of spodumene raw materials to Zhiyuan Lithium's factory in Mianzhu, in southwestern Sichuan province.
Though its production line is set to start running in March, Zhiyuan Lithium remains confident of its full contract performance because its management is replete with experience and professional skills in researching, developing and managing production of lithium salts.
The cooperation attests to the recognition of the firm's management and product quality by a world-leading lithium resources concern and will provide a strategic guarantee of raw material supplies for its subsidiary, said Guangdong Weihua which believes the collaboration will positively influence its performance between 2018 and 2020.
Albemarle Corp. entered the lithium battery materials industry after it acquired Rockwood Holdings Inc., the world's largest lithium producer, for USD6.2 billion in July 2014, public information shows.