(Yicai Global) Aug. 30 -- Chinese automotive compressor maker Nanjing Aotecar New Energy Technology will spend CNY159 million (USD22.3 million) to buy 8.82 percent of shares in a lithium carbonate producer from its controlling shareholder, the firm announced yesterday.

Aotecar's shares [SHE: 002239] skyrocketed to CNY1.93 (USD0.25)on the news to hit the 10 percent daily limit up that stops their trading above that ceiling under exchange rules.

The investment is a financial one only, Aotecar stressed in its announcement, adding the volume of shares acquired is small and does not constitute an overall acquisition, but the market bayed its approval of the move, nonetheless.

The target Qingai HXR Lithium Tech refines and produces salt lake brine mineral resources and has a large-scale sustainable lithium carbonate production capability, with a current output of 20,000 tons per year. The company also owns prospecting rights to about 395 square kilometers of brine mines but has not yet secured mining rights to this area.

Lithium carbonate is a key constituent of new energy vehicle power batteries that greatly correlates with Aotecar's planned new energy vehicle thermal management, battery and charging infrastructure technology business, the announcement said.
This acquisition thus holds positive significance for the company's future business positioning.

Editor: Ben Armour