Ganfeng Lithium Industry plans to increase the capital of Jintai Potash Fertilizer to lock the supply of 5000t/a Lithium Carbonate

On the evening of September 17th, Ganfeng Lithium Industry (002460) issued an announcement that Qinghai Liangcheng, a wholly owned subsidiary, signed an "Capital increase Agreement" with Li Shiwen, Qinghai Fukang Mining Asset Management Co., Ltd., and Qinghai Jintai Potash Fertilizer Co., Ltd. (referred to as: Jintai Potash Fertilizer Co., Ltd.). Qinghai Liangcheng plans to increase its capital by 705 million yuan to Jintai Potash with its own funds. After the transaction is completed, Qinghai Liangcheng will hold a 15.48 per cent stake in Jintai potash.

According to the capital increase agreement, Jintai potash ensures that 70 per cent of all lithium products produced, co-produced or commissioned, as well as brine raw materials to be sold directly (equivalent to lithium carbonate equivalent of not less than 5000 tons / year) are sold to Qinghai Liangcheng.

Ganfeng Lithium Industry said that this capital increase will be conducive to the business development of Ganfeng Lithium Industry, will further increase the company's market share of lithium products, ensure the company's long-term and stable development, and help to improve the company's core competitiveness. in line with the company's upstream and downstream integration and new energy vehicle industry development strategy.

On the same day, Ganfeng Lithium Industry also announced that the company has signed the "Investment attraction Agreement" and the "Investment attraction Supplementary Agreement" with the people's Government of Xuanhan County, Sichuan Province, and that the company or its designated subsidiaries will invest in the construction of high-purity lithium salt projects and decommissioned battery comprehensive recycling projects in the areas under the jurisdiction of the Xuanhan County people's Government. Further expand the production scale and market share of the company's lithium salt products and battery recycling business, ensure the company's long-term and stable development, and help to improve the company's core competitiveness and profitability.

In addition, the battery network learned that in July this year, Ganfeng Lithium Industry said it planned to acquire Canadian lithium company Millennial. On Sept. 15, Ningde Times also made an offer for the Canadian lithium company at a price of 377 million Canadian dollars (1.914 billion yuan), which was higher than Ganfeng's previous offer of 353 million Canadian dollars (1.793 billion yuan), according to online reports.

In this regard, it is reported that Ganfeng Lithium Industry said it will not give up the company's acquisition plan, specific to the outcome of future negotiations.