Speed up the development of salt lake resources in LXXXVI Qiancuo! Jinyuan Co., Ltd. plans to invest 800 million yuan in the construction of 10,000-ton lithium salt project.

After entering the field of new energy raw materials across the border last year, Jinyuan shares (000546) welcomed the good news of the project again on January 5 this year.

According to the information of Jinyuan's share announcement, Tibet Ali Liyuan Mining Development Co., Ltd. (hereinafter referred to as "Lithium Mining"), a subsidiary of the company, plans to invest 800 million yuan to build a "Lxxxxxxxxqicuo Salt Lake 10,000-ton Lithium Salt Project" in Ali, Tibet.

Specifically, the LXXXVI Qiancuo Salt Lake construction project is divided into two phases. The first phase fully verified the technical feasibility, built the field expansion test device with a capacity of 2000 tons / year, and strived to achieve the product off-line and meet the production standard by the end of May 2022; the second phase carried out the optimal design on the basis of the 2000-ton / year expansion test device, built the 8000-ton / year production plant, and strived to complete the product off-line and reach the production standard by the end of November 2022.

According to the announcement, Geji County Lithium Industry Development Co., Ltd., a wholly-owned subsidiary of Liyuan Mining, obtained the mining right of Liguo Qiancuo Salt Lake Mine in Luoma Village, Wenbudangsang Township, Geji County, on September 30, 2021, mining minerals: boron, lithium and potash, valid until April 2, 2029. The company's LiCO3 (lithium carbonate) design annual production capacity is 8000-10000 tons, B2O3 (boron trioxide) design annual production capacity is 20000 tons, the design annual output value is about 1.2 billion yuan, and the annual tax is expected to be about 100 million yuan.

Jinyuan said that the signing of the strategic cooperation framework agreement will help the company speed up the construction of the Lxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx This cooperation will help to promote the strategic layout of the company's salt lake resources in Ali in the future, so as to further enhance the company's market competitiveness and sustainable profitability, which is in line with the company's long-term development strategy and the interests of all shareholders.

Battery net noted that on September 23, 2021, Jinyuan began to acquire a 51% stake in Chenyu Mining and cut into the field of salt lake lithium mining. Chenyu Mining has mining rights in Jiaochaka Salt Lake, Gaize County, Tibet, with lithium chloride reserves of 102400 tons. According to the agreement, when Chenyu Mining's annual output and actual production of lithium carbonate exceed 6000 tons per year, the company will continue to acquire the remaining 49 per cent stake.

On October 12 of the same year, Jinyuan announced plans to acquire no less than 51% of the lithium industry, plus the layout of salt lake resources. And Lithium Industry began to build 20000t/a high purity lithium salt project in 2016, including battery-grade lithium carbonate, battery-grade lithium chloride, high-purity lithium carbonate, battery-grade lithium hydroxide and battery-grade lithium phosphate.

On November 8, Jinyuan shares issued another announcement that based on the preliminary exploration of the resources of the Lxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx At present, the Liyuan mining right certificate of the target company is clear, and the project declaration and construction can be carried out quickly after the acquisition. In order to promote the formal landing of the project and quickly form the planned production capacity, the company acquired a 51 per cent stake in Liyuan Mining with its own capital of 510 million yuan.

In addition, on December 28, Jinyuan shares also said on the investor interactive platform that the company is actively promoting the exploration of foreign lithium ore resources.

In the era of global carbon neutralization and TWh, the strategic importance of lithium resources has become a global consensus.

According to the recent research report of Century Securities, the annual global sales of cars is nearly 100 million, and the value of bicycles is large, which will effectively lead to a high demand for lithium. It is expected that the total global demand for lithium resources will reach 1.45 million tons of LCE, in 2025, and the cumulative production capacity of the resource-side projects with high probability of new construction or expansion is about 1.6 million tons of LCE, supply and demand. The lithium mine auction model further opens the upward space for lithium prices. Lithium prices are expected to remain high in 2022 and the shortage of supply and demand will ease in 2023.