(Yicai Global) Dec. 23 -- Huayou Cobalt, China’s top supplier of raw materials for lithium batteries, said it will acquire a Zimbabwean miner for USD422 million, enhancing its ability to supply customers.

Huayou will buy 87 percent of Prospect Lithium Zimbabwe, which owns the Arcadia lithium mine project near Harare, from Australia’s Prospect Resources, and the rest from two other shareholders, the Zhejiang province-based company said yesterday.

Chinese firms such as Huayou, Ganfeng Lithium, Zijin Mining, and Chengxin Lithium Group are snapping up overseas resources as the shift to electric vehicles stokes demand for the ingredients used in power batteries.

The Arcadia project has lithium carbonate reserves of 1.9 million tons, with a lithium oxide grade of 1.06 percent, and a sound exploration prospects, Huayou said. The duration of the mining rights is open-ended, so long as the firm pays fees on schedule, it added.

Prospect Lithium Zimbabwe had almost USD20 million in total assets and net assets of minus USD918,000 at the end of June. Its fiscal 2021 net loss was more than USD870,000 and operating revenue was USD18,000.

Shares of Huayou [SHA: 603799] ended 0.9 percent higher today at CNY112.25 (USD17.62). The stock has gained 42 percent so far this year.

Editor: Futura Costaglione, Xiao Yi