Yongshan Lithium to build battery-grade lithium carbonate project

On May 8, Jinzhou Yongshan Lithium Co., Ltd announced that it has received board approval to sign an agreement with the Administrative Committee of the Nanchong Economic Development Zone in Nanchong to invest in the construction of a lithium salt production project at the Nanchong Economic Development Chemical Industrial Park. The company will also establish a joint venture with an affiliated party to serve as the project entity.

The lithium salt project will be developed in two phases, covering a total land area of approximately 500 mu (33.3 hectares). Phase I will include the construction of a 30,000tps battery-grade lithium carbonate production line. Construction is scheduled to commence within six months after the agreement takes effect and the project site is ready for development, with an estimated construction period of 18 months.

Phase II will be advanced in line with lithium salt market conditions and the operational performance of Phase I, with plans to build an additional 30,000tpa lithium salt production line.

To facilitate project implementation, Yongshan Lithium plans to jointly establish Sichuan Yongshan Lithium Co., Ltd. with its affiliated company Sichuan Yongying New Materials Co., Ltd., as the investment and construction entity for Phase I. The joint venture will have a registered capital of RMB600 million (USD88.23 million), of which Yongshan Lithium will contribute RMB594 million (USD87.35 million) in cash, representing a 99% equity stake.