(Yicai Global) Nov. 24 -- Shares in Inner Mongolia Dazhong Mining surged as much as 8 percent today after the Chinese iron ore supplier said it is investing CNY20 billion (USD2.8 billion) together with three partners to build a low-carbon industrial park for lithium batteries.

Dazhong’s stock price [SHE:001203] closed down 0.5 percent today at CNY15.81 (USD2.21) as investors cashed in. Earlier in the day it hit CNY17.17.

The park, which will be located in Hexigten Banner in the Inner Mongolia Autonomous Region, will produce both the raw materials used to make lithium batteries as well as the batteries themselves and it will be powered by renewable energy sources, Dazhong said yesterday. All lithium raw materials will come from mines in Hexigten Banner.

The facility will have an expected annual output of 40,000 tons of lithium carbonate, 40,000 tons of other lithium compounds, 250,000 tons of lithium iron phosphate and 100,000 tons of artificial graphite, as well as 10 gigawatt hours of batteries, Dazhong said, citing the agreement signed with the Chifeng prefecture and Hexigten Banner governments on Nov. 22.

The parties will also invest up to CNY8 billion (USD1.1 billion) in renewable energy power plants and supporting energy storage stations that will power the park, the Baotou, Inner Mongolia-based firm said.

They will build at least 1 gigawatt hour of energy storage plants and projects for the public as well as 20 battery charging and swapping stations for heavy-duty electric trucks close to the park, it added.

No further details were given on the specific investment amounts by each party, their shareholding ratios in the project company, sources of financing nor the construction timetable.

Dazhong mostly produces iron ore concentrate powder and pellets which are the main raw materials used in iron and steel smelting.

Editor: Kim Taylor