CATL Acquired a Canadian Mining Company and Became a Shareholder of the World’s Largest Lithium Ore Project

SHANGHAI, Sep 29 (SMM) – It was reported that Suzhou Tianhua Times New Energy Industry Investment Co., Ltd., a shareholding company of CATL, invested $240 million in the lithium mining project Manono of Australian mineral exploration company AVZ Minerals.

After the investment, Tianhua Times obtained a 24% stake in the project.

The Manono project is one of the largest hard rock lithium deposits with the highest grade discovered so far. The proven resources are reached 269 million mt, and the estimated lithium resource reserves are 400 million mt, of which the grade of lithium oxide is 1.65%, which is at a relatively high level.

AVZ previously estimated that the Manono project's designed capacity includes an annual output of 700,000 mt of lithium oxide, with a designed life of up to 20 years.

The project is expected to be completed and put into operation in 2023. AVZ Mining Company plans to complete the shipment of the first batch of lithium concentrate products in the first quarter of 2023 and complete the shipments of the first batch of lithium sulphate products in the third quarter of the same year.

Therefore, investing in this lithium mine project means that Tianhua Times will obtain sufficient supply of lithium resources in the future.

It is reported that on Tuesday, local time, Canadian lithium company Millennial Lithium Corp stated that CATL acquired 100% of its equity with $377 million CAD, approximately 1.9 billion yuan RMB.

CATL confirmed the news.

Millennial Lithium Corp has two lithium salt lake projects in Argentina, with abundant lithium resources.

In September 2020, CATL invested 8.58 million CAD to become a shareholder of a Canadian mining giant Neo Lithium.

CATL commented that the acquisition is an important measure for the company's supply chain layout. In the future, it will further ensure the long-term and stable supply of lithium raw materials.