(Yicai Global) Oct. 20 -- Jiangxi Special Motor Co. [SHE:002176] (JSMC) will purchase an 11.45-percent stake in Australian lithium mining firm Tawana Resources NL [ASX:TAW] for AUD20 million (USD15.7 million) through its Germany-based wholly-owned subsidiary Weier Antriebe und Energietechnik GmbH, the auto firm said in a press release yesterday.
The acquisition will ensure an adequate supply of lithium concentrates for the production of lithium carbonate and lithium hydroxide products by its joint-venture subsidiary Jiangxi Baojiang Lithium Industry Ltd.
Tawana mainly engages in the exploration and development of lithium, tantalum and iron ores. It holds 50 percent equity in the Bald Hill Project and outright owns the Cowan Lithium Project , both of which are in Western Australia.
The first shipment of lithium concentrates from the former project is scheduled for the first quarter of next year.
After the deal, Jiangxi Baojiang Lithium Industry will produce 10,000 tons of lithium carbonate and 5,000 tons of lithium hydroxide products annually.
Lithium is a core ingredient for making new-energy vehicle and smartphone batteries.