Dazhong Mining plans to jointly establish a lithium salt project with Wanhua Chemical

(Source: Xingyuan Chemical Industrial Park Research Institute)

On March 23, Datong Mining Industry announced that it plans to cooperate with WanHua Chemical (Sichuan) Battery Materials Technology Co., Ltd. to invest in and build a lithium salt project with an annual output of 200,000 metric tons in the Sichuan Meishan High-Tech Industrial Development Zone.

The project’s overall planned capacity is 200,000 metric tons of lithium salt, to be built in three phases: Phase 1 with an annual output of 30,000 metric tons, Phase 2 with an annual output of 70,000 metric tons, and a long-term plan for an annual output of 100,000 metric tons. Among them, the total investment scale for Phases 1 and 2 is RMB 2.2 billion, while the investment for Phase 3 will be developed through rolling investment using cash flows generated from production in Phases 1 and 2.

According to the announcement, in order to advance the implementation of the project, Datong Mining Industry plans to sign a joint-venture agreement with WanHua Battery Materials Company, jointly capitalizing to establish a joint-venture company as the investment and construction entity for Phase 1 of the project with an annual output of 30,000 metric tons of lithium salt. The registered capital of the joint-venture company is RMB 300 million, of which Datong Mining Industry will contribute RMB 240 million in cash (80% equity), and WanHua Battery Materials Company will contribute RMB 60 million in cash (20% equity).

Based on the announcement, currently, Datong Mining Industry’s Sichuan Jiada lithium mine’s first mining area (only one-tenth of the exploration permit investigation area) has filed resources of 1.4842 million metric tons of lithium carbonate equivalent. The planned scale for mining raw ore in Phase 1 is 2.6 million metric tons per year; after reaching full capacity, the raw ore mined each year can produce about 500,000 metric tons of lithium carbonate. It has a solid foundation in terms of lithium resource endowment.

Datong Mining Industry stated that WanHua Chemical, as a global chemical industry leader, is continuously accelerating the construction of battery material projects such as lithium iron phosphate, and actively building its second growth curve. The company’s cooperation with WanHua Battery Materials Company will fully leverage WanHua Chemical’s advantages in R&D, technology, and management in the chemical field, to build a technologically leading lithium salt plant; to form a stable supply-and-demand relationship, jointly withstand fluctuations in market conditions, build a healthy, high-quality, and sustainably developing ecosystem, and further consolidate the company’s competitive position.

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