SVOLT, EVE Energy, Sichuan New Energy Power to build joint venture for lithium salt project

Shanghai (Gasgoo)- On June 13, two Chinese power battery manufacturers, SVOLT and EVE Energy, signed an agreement with Sichuan New Energy Power Company Limited (“CNDL”) to build a joint venture for a lithium salt manufacturing project, as part of the efforts to boost the development of the lithium battery industry in Sichuan province.

According to CNDL's announcement, the new joint venture will have a registered capital of 750 million yuan ($111.062 million) and its equity interests will be 51:24.5:24.5 split by CNDL, EVE Energy, and SVOLT respectively.

Signing ceremony; photo credit: SVOLT

The project will involve a total investment of 1,491.21 million yuan ($220.822 million). Under this project, production lines with an annual capacity of 15,000-tonne battery-grade lithium hydroxide and 15,000-tonne battery-grade lithium carbonate, as well as relevant supporting facilities will be built at Deyang-Aba Eco-economy Industrial Park.

The entire construction works are anticipated to be completed in two years.

As one of the core raw materials of power batteries, lithium salts have been continuously rising on prices due to multiple factors as demands, supplies, and development period. SVOLT said it lays great store by the supply of lithium resources. In 2017, it obtained stakes in Australian lithium miner Pilbara Minerals through its affiliated company. In the domestic market, it has invested in Guangxi Tianyuan New Energy Materials Co., Ltd. and Hunan Yongshan Lithium Co., Ltd.