Ningde Times and Yongxing Materials Joint Venture to establish Lithium Carbonate Project Company with registered Capital of 1 billion yuan

Yifeng Times Yongxing New Energy Materials Co., Ltd. (hereinafter referred to as: time Yongxing) was established with a registered capital of 1 billion yuan and legal representative Lin Meina, whose business scope includes mining of mineral resources (non-coal mines); production and sales of chemical products; research and development of new materials and technology; promotion services of new materials and technology.

According to shareholder information, time Yongxing is jointly owned by Yichun Times New Energy Resources Co., Ltd., a subsidiary of Ningde Times (300750), and Jiangxi Yongxing Special Steel New Energy Technology Co., Ltd., a subsidiary of Yongxing Materials (002756).

According to the announcement issued by Yongxing Materials on February 17, the company and Ningde Times plan to set up a joint venture company to jointly invest in the construction of lithium carbonate project and carry out cooperation in related product fields. give full play to the company's technical and management advantages in mica lithium extraction and its leading position in the lithium extraction industry, so as to improve the guarantee capacity of domestic lithium resources.

Among them, the total investment amount of the lithium carbonate project is not more than 2.5 billion yuan, and the project with an annual capacity of 50, 000 tons of lithium carbonate is planned to be built; the first phase of the project is invested in the construction of a project with an annual capacity of 30, 000 tons of lithium carbonate, with a total investment amount of no more than 1.5 billion yuan; after the first phase of the project reaches production, start the construction of surplus capacity. The raw materials of the joint venture company are supplied by Ningde Times or its related parties, and 100% of the lithium carbonate products are preferentially supplied to Ningde Times or its designated parties.

According to the analysis of Galaxy Securities, the first phase of Yongxing lithium carbonate project will reach production in July 2020, and the second phase of the project will start construction in February 2021 and is expected to start production in the first half of 2022. In terms of resources, the company's 1.2 million tons / year mineral processing project and Yongcheng lithium industry 500000 tons / year (up to 600000 tons) mineral processing expansion project have reached production, the new 1.8 million tons / ton mineral processing project has obtained environmental assessment and is carrying out plant infrastructure construction. the matching 3 million-ton technical renovation and expansion mining project is being expanded for approval, and the company's own mineral resources can support an annual production capacity of 50, 000 tons of lithium carbonate.

In addition, on February 15, Yongxing New Energy and Jiangxi Tungsten Industry signed a "letter of intent" to set up a joint venture company to build a project with an annual output of 20,000 tons of lithium carbonate. The equity proportion of the joint venture company is 49% of Yongxing New Energy and 51% of Jiangxi tungsten industry; the planned production capacity of lithium carbonate production line is 20,000 tons per year, and the project is implemented in two phases, of which the first phase produces 10,000 tons of lithium carbonate annually. Jiangxi tungsten industry is responsible for the supply of lithium mica raw materials, Yongxing New Energy is responsible for providing technical support for the preparation of battery-grade lithium carbonate from lithium mica, and the battery-grade lithium carbonate produced is supplied to Ningde era.