Lanxiao Science and Technology join hands with Yiwei Lithium Energy to build a 10,000-ton Lithium hydroxide Project in Jiezecha Salt Lake, Tibet

SMM January 11: last night, Lanxiao Technology issued two announcements explaining that the company was commissioned by Tibet Guoneng Mining to build a phase of 10000t/a salt lake brine extraction lithium hydroxide production line and other related matters. Subsequently, Lanxiao Science and Technology issued an announcement saying that Lithium will join hands with Yiwei Lithium to participate in the development and utilization of lithium resources in Jieze Chaka Salt Lake, Tibet.

Specifically, in the "contract for commissioned processing of 10,000-ton Lithium hydroxide in Tibet Jieze Chaka Salt Lake" signed between Lanxiao Science and Technology and Tibet Guoneng Mining Industry, according to the provisions of the contract, the project adopts the method of entrusted processing. Guoneng Mining Industry is responsible for providing brine resources and public supporting facilities such as fresh water, electricity and factories, and pays Lanxiao Technology commissioned processing fees and a share of product sales income in accordance with the contract. Lanxiao Technology is responsible for setting up the project company in the project location, using its own technology and funds to build the first phase of 10000t/a salt lake brine extraction lithium hydroxide production line, and in accordance with this contract to accept the national energy mining commissioned production and processing of lithium hydroxide products, the follow-up depends on the operation of the project and the intention of both parties to build the second phase of 20000t/a, the third phase of 20000t/a lithium hydroxide production line.

The construction period of the first phase of the production line will be completed from the effective date of the contract to December 2023, and the total output will reach 1000 tons by the end of 2022; the entrusted processing period is 15 years from the date when the project reaches the production standard and the performance assessment of both sides is qualified, and the total output of lithium hydroxide products of the project is not less than 150000 tons. If the target of 150000 tons is not completed at the end of the entrusted processing period, the time limit shall be extended until the target is completed.

According to public data, Guoneng Mining is rich in salt lake brine resources, including two salt lakes, including Geze Chaka and Longmu Cuo in Ali Prefecture, Tibet, and its lithium reserves are among the best in Tibet.

It is worth mentioning that it is mentioned in the contract that Lanxiao Technology can introduce enterprises related to the industrial chain to participate in the project. Therefore, Lanxiao Technology announced on the same day that based on the company's development of the Jieze Chaka Salt Lake in Tibet, Lanxiao Technology decided to participate with Yiwei Lithium in the development and utilization of lithium resources in the Jieze Chaka Salt Lake in Tibet. The two sides will jointly set up a local joint venture project company to jointly undertake the rights and obligations of Lanxiao Technology in the above contract. In the future, the registered capital of the project company and the respective shareholding ratio of both parties will be agreed in a separate contract. After the signing of this agreement, Lanxiao Technology will try its best to urge all parties involved in the project to give priority to the long-term supply of qualified lithium salt to Yiwei Lithium Energy and its designated parties at competitive prices.

The agreement has a tentative cooperation period of 15 years, which is in line with the commissioned processing zone stipulated by Lanxiao Technology and Guoneng Mining.