Sichuan New Energy Gains by Limit on Plan to Take Over Salt Lake Lithium Tech Firm Qidi
Tang Shihua
DATE:  Sep 20 2022
/ SOURCE:  Yicai
Sichuan New Energy Gains by Limit on Plan to Take Over Salt Lake Lithium Tech Firm Qidi Sichuan New Energy Gains by Limit on Plan to Take Over Salt Lake Lithium Tech Firm Qidi

(Yicai Global) Sept. 20 -- Shares in Sichuan New Energy Power surged by the exchange-imposed limit today after the Chinese supplier of lithium battery raw materials said it will buy a controlling stake in Qidi Qingyuan Beijing Technology, a firm that develops techniques to absorb lithium from salt lake brine.

Sichuan New Energy’s stock price [SHE:000155] closed up 10 percent at CNY20.76 (USD2.96) apiece today.

Sichuan New Energy will purchase a 40 percent stake in Qidi Qingyuan from Tus New Materials to become the majority shareholder, the Chengdu, southwestern Sichuan province-based firm said yesterday, citing the agreement of intent signed between Sichuan New Energy and Tsinghua University-backed Tus.

The acquisition will help Sichuan New Energy extend its reach from lithium ore processing to extracting lithium from salt lakes, it said. It will also enhance the firm's ability to acquire resources and boost competitiveness.

The purchase price will be determined by both parties based on a valuation given by a third-party asset evaluation agency, it added.

Sichuan New Energy has close ties to Qidi. Its parent firm, Sichuan Energy Industry Investment Group, is a major shareholder in Qidi’s parent firm. Also, another unit of Sichuan Energy Industry holds a 22.24 percent stake in Tus Holdings, which owns Tus New Materials.

Qidi, which counts salt lake developer Qinghai Salt Lake Industry Group among its clients, also runs a plant that makes membrane separation parts in Wuhu, eastern Anhui province, Sichuan New Energy said.

Sichuan New Energy owns the Lijiagou lithium mine in Sichuan, which is Asia’s biggest single spodumene mine. Still under construction, the mine is expected to produce 180,000 tons of lithium concentrate a year once up and running.

Editor: Kim Taylor

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Keywords:   Assets Acquisition,TUS-Membrane,Membrane Separation Technology,Salt Lake Brine Processing,R&D,Cathode Material,Power Battery,Sichuan New Energy Power