(Yicai Global) Sept. 27 -- Ganfeng Lithium is planning to invest up to CNY500 million (USD73 million) to build a battery-grade lithium hydroxide production line with an annual production capacity of 25,000 tons in eastern China's Jiangxi province where it is based.
The company and its wholly-owned affiliate GFL International have previously received long-term orders for battery-grade lithium compounds from Seoul, South Korea-based international battery maker LG Chem and California-headquartered electric vehicle giant Tesla.
The company's board approved the relevant resolutions on Sept. 25, Ganfeng announced yesterday.
The production line will be in the firm's factory in Xinyu, Jiangxi. Construction is expected to last one and half years, the announcement said.
A series of production workshops and related auxiliary, public and environmental protection projects will be built for the new line, and partial upgrades to the original equipment will also raise efficiency and lower costs, the announcement stated.
Ganfeng's existing production line has an annual capacity of 15,000 tons of battery-grade lithium carbonate and 20,000 tons of lithium hydroxide monohydrate, the announcement added.
The new production line will increase the output and market share of Ganfeng's high-end lithium salt products, enhance its core competitiveness, and meet the new energy vehicle industry's demand for power battery raw materials, per the announcement.
The company will provide 92,600 tons of battery-grade lithium hydroxide and lithium carbonate products to LG Chem in the next six years, and 20 percent of its battery-grade lithium hydroxide production to Tesla's battery suppliers by the end of 2020.
Editor: Ben Armour