(Yicai Global) Sept. 2 -- Shares of TA&A Ultra Clean Technology shot up after the firm announced a CNY2.3 billion (USD356 million) plan to expand its annual capacity of lithium hydroxide, the main raw material for high-energy-density high-nickel type ternary lithium-ion batteries.

TA&A Ultra Clean [SHE:300390] ended 18.7 percent higher today at CNY106.50 (USD16.48). The stock has gained more than 185 percent in the past three months.

The project will expand TA&A’s annual capacity of lithium hydroxide at Yibin in China’s Sichuan province by 50,000 tons to meet the needs of the lithium-ion battery market, which is being driven by rapid growth in the electric vehicle industry, the Suzhou-based company said late yesterday.

The expansion will be carried out by a new Yibin-registered and based unit of TA&A. The project is will be in two phases, each with a capacity of 25,000 tons, to be completed by 2022 and June 30, 2024, respectively.

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.

TA&A Ultra Clean, Australian miner Pilgangoora Operations’ shareholder CATL and other investors own 65 percent, 15 percent and 20 percent, respectively in the Yibin-based JV Tianyi Lithium. The plant uses lithium concentrate from Pilgangoora as raw material.

Editor: Futura Costaglione