(Yicai Global) Aug. 31 -- Chinese new energy material maker Beijing Easpring Material Technology Co. [SHE:300073]  will buy cobalt and nickel from Australian mining company Clean TeQ Holdings Limited [ASX:CLQ] as raw materials for lithium cathode products.

Beijing Easpring said it yesterday signed a product purchase agreement with Clean TeQ's wholly owned subsidiary, Scandium21 Pty Ltd, to work together on the Syerston project.

Located to the west of Sydney, Australia, the Syerston project is a cobalt-nickel project owned by Clean TeQ and boasts rich scandium and manganese resources, the announcement said. Construction on the project has not begun yet, and a definitive feasibility study report is expected to be completed in the fourth quarter of this year.

Clean TeQ will supply cobalt and nickel products to Beijing Easpring to be used as raw materials for producing lithium cathode materials for five consecutive years after the Syerston project starts production, the announcement said. Such supply will account for about 20 percent of the project's total output, and transaction prices will be determined based on prevailing market prices. Beijing Easpring also plans to acquire a stake of at least 25 percent in the project to qualify as a long-term purchaser.

Its partnership with Clean TeQ will help the company secure the stable supply of upstream raw materials, cut raw material purchase costs and consolidate its competitive strengths in the new energy material market, Beijing Easpring said.