(Yicai Global) Sept. 3 -- TA&A Ultra Clean Technology announced a CNY2.5 billion (USD387 million) plan to further expand its annual capacity of lithium hydroxide, the main raw material for high-energy-density high-nickel type ternary lithium-ion batteries.

TA&A will build a new plant in Meizhou, in southwestern China’s Sichuan province, to raise its annual capacity of lithium hydroxide by 60,000 tons, the Suzhou-based company said in a statement late yesterday, just two days after it announced another 50,000 tons expansion plan.

The firm announced on Sept. 1 that it will carry out a CNY2.3 billion project in Yibin, just 200 kilometers from Meizhou, to double its annual output of lithium hydroxide, in order to meet the needs of the lithium-ion battery market. The plant will be fully operational by June 30, 2024.

The Meizhou’s plant will not impact the company’s daily operation or existing projects, TA&A added without revealing the source of the funds.

The project will be divided in two phases, each with a capacity of 30,000 tons, to be completed by next year’s second quarter and December 2024, respectively. Once operational, TA&A will hike its total lithium hydroxide output to 160,000 tons a year.

TA&A Ultra Clean [SHE:300390] closed down 1.1 percent at CNY105.35 (USD16.31), after opening up 5 percent. The stock has gained more than 185 percent in the past three months.

The price of lithium dioxide had shot up by almost 150 percent to CNY124,000 (USD19,190) per ton in late August from early 2021.

TA&A announced the building of China’s biggest lithium hydroxide project last December. The firm, Contemporary Amperex Technology and other partners invested CNY2 billion (USD310 million) to set up a joint venture to operate the plant. Put into operation this year, it has an annual capacity of 25,000 tons, and it is expected to reach 50,000 tons by December.

Editor: Futura Costaglione