On the evening of January 28th, Tianhua Super net announced that it signed a "Joint Venture Agreement on 100000 tons of Lithium Carbonate production capacity" with Ningde Times on January 28, 2022. The company intends to jointly invest with Ningde Times or its wholly-owned subsidiaries to set up a limited liability company in Yichun City with cash (the specific enterprise name is subject to the final confirmation of industrial and commercial registration), and the joint venture company will invest in the construction of 100000 tons of lithium carbonate smelting capacity project. The registered capital of the joint venture company is 1 billion yuan, of which the company plans to invest 100 million yuan, accounting for 10% of the registered capital of the joint venture company.
The announcement revealed that Ningde Times and Tianhua Chaojing jointly established the company's holding subsidiary Tianyi Lithium Industry Science and Technology Co., Ltd. (hereinafter referred to as "Tianyi Lithium Industry"). As of the date of disclosure of this announcement, Ningde Times holds a 25% stake in Tianyi Lithium Industry, making it the second largest shareholder in Tianyi Lithium Industry.
1. Business objectives. The two sides agreed that the joint venture company plans to build a 100000-ton lithium carbonate production capacity project, which is expected to complete 50, 000 tons of lithium carbonate smelting capacity within one year after the establishment of the joint venture company, and the remaining 50, 000 tons of lithium carbonate smelting capacity project is expected to be completed by the end of 2023.
2. Technology development. Both parties agree that the technology independently developed by the joint venture company shall be owned by the joint venture company, and both parties, as shareholders (including their controlling subsidiaries) of the joint venture company, shall have the right to use the technology independently developed by the joint venture company, but without the prior written consent of the other party, may not be authorized or may be used by a third party.
3. The raw materials are supplied by the lithium ore or lithium concentrate of the joint venture company guaranteed by Ningde Times.
4. Product procurement (1) 100% of the lithium carbonate products of the joint venture company will be preferentially supplied to Ningde Times or its designated parties. (2) Ningde Times and the joint venture company shall sign a specific purchase agreement or order separately within the scope of the principles stipulated in the joint venture agreement, agree on product specifications, specific market price discount ratio, phased price adjustment mechanism, technical requirements, delivery time, warranty arrangement, etc.
