(Yicai Global) June 15 -- Chinese chemical firm will buy into a unit of a Chengdu-based energy company to gain access to upstream mineral resources as part of efforts to tap the vigorously growing new energy vehicles battery sector.
Sichuan Chemical Company plans to purchase a 50-percent stake in state-controlled Sichuan Energy Investment Lithium Technology for a price that will be decided upon later, the fertilizer firm said. Sichuan Energy Industry Investment Group acquired a similar stake in the natural resources firm at a cost of CNY534 million earlier.
Global electric car firms have raced to lock in battery raw materials as the NEV market grows at a fast speed. Goldman Sachs expects China to supply 60 percent of the world’s electric vehicles by 2030, up from 45 percent in 2016.
The lithium processor firm owns Asia’s largest spodumene mine in its home province, which is expected to start operations by early 2020. The annual raw ore mining capacity is expected to be over 1 million tons and the refined lithium powder output 180,000 tons.
Editor: Emmi Laine