(Yicai Global) July 11 -- Jiangxi Special Electric Motor Co. [SHE:002176] will partner with a Hong Kong company to set up a lithium concentrate processing plant in East China's Jiangxi province, aiming to improve its lithium production capacity.
One of its wholly-owned subsidiaries will start the joint venture in collaboration with a wholly-owned subsidiary of Burwill Holdings Ltd. [HK:00024], and each will invest CNY40 million to take a 50 percent stake in the lithium plant, the battery maker said in a statement yesterday.
The new venture will specialize in production and sales of lithium carbonate and lithium hydroxide derived from spodumene concentrate, per the statement. After the plant reaches its designed production capacity, it will sell approximately 15,000 tons of lithium carbonate and hydroxide products a year. The construction period is projected at around 10 months.
The plant will source spodumene concentrate raw materials from the Hong Kong firm, and prioritize Australian Bald Hill spodumene concentrate the firm supplies as the exclusive seller, the statement said. If the Australian spodumene concentrate is unavailable, the plant will purchase Canadian equivalents the company also distributes. After the plant opens, the total production capacity of lithium carbonate and lithium hydroxide at Jiangxi Special Electric Motor will rise to 30,000 tons a year. This will help the company significantly improve its profitability, per the statement.