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(Yicai Global) Sept. 29 -- Contemporary Amperex Technology is snapping up a 24 percent stake in one of the world’s biggest and highest-grade lithium reserves located in the Democratic Republic of Congo as the Chinese electric car battery making giant moves to ensure adequate supply of raw materials.
Unit Suzhou Tianhua Times New Energy Industry Investment has agreed to pay Australian mineral exploration firm AVZ Minerals USD240 million that will go towards developing the Manono lithium project in southeastern Congo, The Paper reported yesterday. After the deal, AVZ Minerals will remain with 51 percent equity, Congolese state-owned firm Cominiere with 25 percent and CATL the rest.
Ningde, southeastern Fujian province-based CATL’s investment is likely to reach over USD400 million when taking into account development costs, and the pair will work together to assess the feasibility of developing lithium hydroxide, Perth-based AVZ Minerals said.
The Manono project, which is expected to start operation in 2023, has proven reserves of 269 million tons of lithium and inferred reserves of 400 million tons, according to a report released by AVZ Minerals last April. The Manono project has a design capacity of 700,000 tons lithium oxide a year and a projected life of 20 years, it added.
Demand for lithium carbonate, a key raw material used to make electric car batteries, is surging and with it its price, as new energy vehicle sales soar. Global demand will be around 861,000 tons by 2025, Southwest Securities said. Many Chinese battery makers and raw material suppliers have been extending their reach to overseas countries rich in lithium resources to ensure supply.
Editor: Kim Taylor