(Yicai Global) Feb. 13 -- Zhejiang Kan Specialities Material Co. struck a strategic partnership framework agreement with Qingdao QianYun High-Tech New Material Co. yesterday in its latest shift toward the new-energy vehicle battery market, the electrolytic capacitor paper producer said yesterday.
The two will cooperate in processing lithium ore and making cathode materials, it added. Kan Specialities Material will process Australian spodumene that QianYun supplies into lithium powder, which may then be further processed into battery grade lithium carbonate, per the statement. The firms will kick off joint lithium carbonate processing operations, and may decide to set up a joint venture or bring in a third-party partner to run the lithium carbonate plant, the statement said.
The Qingdao-based firm sealed a spodumene trade contract with Australia's Wodgina Lithium Pty last June, securing 4.3 million tons of spodumene supplies for 25 months, it said. QianYun will use 30 to 50 percent of the Australian supplies in joint high-end cathode material production and supply the end products to Kan Specialities Material and its affiliates.
After being processed and refined, the 4.3 million tons of spodumene should yield more than 10 tons of battery grade lithium carbonate, per the statement. Kan Specialities Material released an asset reorganization plan in early December, stating it will acquire an 87.58 percent stake in lithium-ion battery developer and producer Shenzhen Zhuoneng New Energy Co. via a private share placement.