EVE Energy gets 49% stake in Qinghai-based lithium salt producer for 200 million yuan

Shanghai (Gasgoo)- Huizhou EVE Energy Co.,Ltd. (“EVE Energy”), a Chinese power battery maker headquartered in Huizhou city, announced earlier this week it has successfully obtained a 49% stake in Qinghai Qaidam Xinghua Lithium Salt Co.,Ltd. (“Xinghua Lithium Salt”), marking a significant progress for EVE Energy's deployment of battery raw materials.

Photo credit: EVE Energy

According to the latest announcement, EVE Energy took over a 35.2857% stake in Xinhua Lithium Salt from Qinghai Qaidam Development Construction Investment Co.,Ltd. (“Qaidam Construction Investment”). In this transaction, EVE Energy signed an equity transfer contract with Qaidam Construction Investment for buying the stake at 144 million yuan ($22.637 million) (excluding the service fee for the auction).

The other 13.7143% stake was previously held by Zhai Yanhong, a shareholder of Xinghua Lithium Salt. To obtain the equity interest, EVE Energy agreed to pay 56,015,800 yuan ($8.806 million).

Upon completion of the aforesaid two transactions, EVE Energy will directly hold 49% stake in Xinghua Lithium Salt. The battery maker said the move will help it further focus on the main business of lithium battery, develop upstream industrial chain, and improve its industrial deployment. All in all, the transactions are in line with EVE Energy’s development strategy and the benefit to the whole.

Founded in 2016, Xinghua Lithium Salt is permitted to produce and sell lithium salt and boron compound, according to the corporate database Tianyancha.

Just one day before the aforementioned announcement issued, EVE Energy claimed that it had signed a strategic cooperation agreement with Sunresin, a Chinese leading special resin manufacturer based in Xi'an. Both parties plan to carry out in-depth collaboration in lithium resource industrial chain and actively engage in the development and utilization of the lithium resource of Tibetan Kyetsé Tsakha Salt Lake.