Tianhua Chaojing plans to raise no more than 4.6 billion to invest in battery-grade lithium hydroxide and other projects.

SMM Feb. 9: last night, Tianhua Super net announced that it plans to raise no more than 4.6 billion yuan for Sichuan Tianhua Times Lithium Energy Co., Ltd. annual production of 60, 000 tons of battery-grade lithium hydroxide construction project, Yibin Weineng Lithium Industry Science and Technology Co., Ltd. annual output of 25000 tons of battery-grade lithium hydroxide project, acquisition of Yibin Tianyi Lithium Industry Science and Technology Co., Ltd. 7% equity and supplementary liquidity.

Specifically, Tianhua Chaojing plans to invest in the "Sichuan Tianhua era Lithium Energy Co., Ltd., with an annual output of 60,000 tons of battery-grade lithium hydroxide construction project" through its subsidiary, Sichuan Tianhua Times Lithium Energy Co., Ltd. The total investment of the project is 2.5 billion yuan. According to the announcement, Tianyi Lithium, a subsidiary of the company, has formed a production capacity of 45000 tons of battery-grade lithium hydroxide per year, and after the completion of the above project, Tianhua Ultra Clean will add 60, 000 tons of battery-grade lithium hydroxide capacity per year. The company's lithium hydroxide production capacity will be further increased.

Then there is the first phase of the battery-grade lithium hydroxide project with an annual output of 25000 tons built by Yibin Weineng Lithium Industry Science and Technology Co., Ltd. the total investment of the project is about 970 million, and the construction period of the project is one year, which can help the company quickly adapt to the fast-growing needs of downstream industries and reduce its dependence on major customers.

In addition, the company will use 980 million of the funds raised to acquire a 7 per cent stake in Tianyi Lithium in cash. Upon completion of the deal, the company will directly hold a 75 per cent stake in Tianyi Lithium. It is worth mentioning that Tianyi Lithium Industry has made a great contribution to Tianhua Super Clean's performance growth in 2021, and its wholly-owned subsidiary Weineng Lithium Industry will build 50,000 tons of battery-grade lithium hydroxide capacity in the future. Further increasing the company's shareholding in Tianyi Lithium Industry will also enable the company to better share the growing revenue and profits of Tianyi Lithium Industry, and more of the dividends implemented by Tianyi Lithium Industry will belong to listed companies in the future.

According to public data, Tianyi Lithium Industry is an enterprise specializing in the production and sales of battery-grade lithium hydroxide, and its products are mainly used in the production of ternary cathode materials for power batteries for new energy vehicles.

Related reading: lithium carbonate jumped 8000 yuan today! The average price of lithium hydroxide broke through the 300000 yuan mark in one fell swoop. [SMM Express]