(Yicai Global) May 23 -- MeiDu Energy Corporation will invest AUD10 million (USD7.5 million) to establish a wholly-owned subsidiary in western Australia, specializing in the mining of lithium and cobalt in order to meet the demand for power battery materials in China's booming new energy vehicle market.

The Australian subsidiary will specialize in the investment, exploration, research, development, and sales of lithium and cobalt mines, said the Hangzhou-based energy development company in a statement yesterday.

The establishment of a wholly-owned subsidiary in Australia will help ensure the stable and sustainable raw material supply for the company's power battery business, the statement added without giving further details.

As China promotes new energy vehicles in the world's biggest auto market, the demand for lithium, the key element in rechargeable batteries, has been booming. A number of Chinese companies have recently invested in overseas lithium producers to ensure supply security.

MeiDu Energy has been producing lithium carbonate, lithium battery ternary precursors, ternary cathode materials and ternary lithium batteries required to make new energy batteries through a number of asset acquisitions in recent years. It currently develops several projects to increase production capacity.

Editor: Mevlut Katik