(Yicai Global) Dec. 13 -- Yongxing Special Stainless Steel Co. [SHE:002756] will invest CNY1 billion (USD151 million) in a mining and processing project via its wholly-owned subsidiary to synchronize the development of traditional metal materials and new energy ones.
The Zhejiang-based group and the government of Yifeng county in Jiangxi province signed a contract on the facility, which has an annual production capacity of 10,000 tons of battery-grade lithium carbonate and a total production capacity of 1.2 million tons.
The company said yesterday that after obtaining land use rights it will start construction within one month, complete the project’s first phase within 18 months and put it into operation in 2019.
The Yifeng county government will make sure that Yifeng’s Huaqiao Mining Co., which has a relevant mining license, will work with Yongxing Special Stainless Steel and provide funds to set up a joint venture that Yongxing Special Stainless Steel will run, guaranteeing mineral resources for a period of at least 30 years.
The future annual capacity of the project will be 30,000 tons of battery-grade lithium carbonate or lithium hydroxide and 2.4 million tons of mined and processed resources.
The prefecture-level city of Yichun, which contains Yifeng, is known as the ‘lithium city of Asia,’ and Yifeng has the most abundant lithium reserves in the region.