Dazhong Mining Plans to Invest 1 Billion Yuan in Lithium Metal Material Project

Dazhong Mining (001203.SZ) extended its lithium battery business to lithium metal battery materials.

The company announced signing an investment agreement with Linwu High-Tech Industrial Development Zone Management Committee, planning to invest 1 billion yuan in constructing a "3,000 mt/year lithium metal battery new materials project." As of today's market close, Dazhong Mining's stock price closed at 10.07 yuan, with a total market capitalization reaching 15.186 billion yuan.

The project will be implemented in three phases. Phase I focuses on R&D, aiming to complete the development, pilot testing, and medium-scale testing of lithium metal battery new materials this year. Phase II plans to construct a 1,000 mt/year production line, with construction expected to commence in April next year and reach completion by the end of 2027. Phase III involves building a 2,000 mt/year production line, scheduled to start construction in June 2027 and begin operations by the end of 2028.

The company stated that lithium metal battery materials offer significant advantages in high specific capacity, serving as critical raw materials for high-performance batteries, particularly solid-state batteries, aligning with the new energy industry's upgrade trend. Currently, Dazhong Mining holds 3.24 million mt LCE resources in Linwu County, with supporting lithium ore mining and lithium carbonate processing projects, forming an integrated industry chain from mining to smelting. This investment reflects the company's forward-looking strategy based on thorough market analysis and future development considerations.

Solid-state batteries, with advantages like high energy density, enhanced safety, and long cycle life, have emerged as the core direction for next-generation battery technology. Since 2024, semi-solid-state batteries have entered mass production, while all-solid-state batteries are expected to begin small-scale vehicle integration by 2027, with full-scale commercialization anticipated by 2030.

Earlier, Dazhong Mining disclosed progress on the exploration-to-mining transition for its Jijiaoshan lithium mine in Hunan. In March, the company announced approval of the Mineral Resources Development and Utilization Plan for the mine.

The mining license application process requires completing the "Mine Geological Environmental Protection and Land Reclamation Plan" after the utilization plan approval, followed by the new mining rights approval stage.

On June 7, the company announced that the Jijiaoshan Mine's Geological Environmental Protection and Land Reclamation Plan in Linwu County, Hunan, recently passed expert review by the Ministry of Natural Resources. According to the announcement, the mining method in the Jijiaoshan mining area in Hunan involves open-pit mining first, followed by underground mining. The scale of open-pit mining is 20 million mt/year, and the scale of underground mining is 8 million mt/year.

Currently, the expert review results of the "Plan" are still in the public announcement period. After the public announcement period for the review results ends, Chenzhou Chengtai, a subsidiary of Dazhong Mining, will apply to the Ministry of Natural Resources for a mining license. According to the provisions of the "Service Guide for Registration of New Mining Rights (Non-Oil and Gas)" issued by the Ministry of Natural Resources, an approval decision will be made within 40 days from the date of accepting the application. The company will promptly disclose relevant information based on the progress.