SHANGHAI, Dec.8 (SMM)－Chinese electric vehicle battery producer Dynavolt Tech is signing a binding agreement with Canadian lithium miner Metalstech to purchase its 10 million stocks.
Metalstech has many lithium projects in Quebec, Canada and it plans to build lithium carbonate lithium and lithium oxide processing plants. Dynavolt Tech is negotiating with it on equity investment of those projects.
According to the announcement, Dynavolt Tech is one of the world’s largest battery producers and leaders in EV battery market. The company is listed in Shenzhen stock Exchange with a market value over 10 billion yuan. Recently the company announced to invest 3 billion yuan to build high-end Li-ion battery business.
Nowadays resource is the “king” in China’s new-energy industry. Companies holding upstream resources have more bargaining power. We can see those companies possessing lithium and cobalt mines are surging their stock prices.
Insiders say there has been some cases of purchasing upstream companies in this industry by downstream companies purchasing mines or buying shares of upstream companies to lock raw material supply and avoid adverse effect to company's business due to short supply from upstream raw materials.
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