Cross-border lithium battery! Anzhong Co., Ltd. intends to acquire no less than 51% stake in Xingli Technology.

On the evening of June 16, Anzhong shares (002667) issued an announcement that on the same day, the company signed a "Cash Asset purchase intention Agreement" with Tongan Mineral products Development Co., Ltd. (hereinafter referred to as "Jiangxi Tongan") in Yifeng County, Jiangxi Province. The company intends to use its own funds to acquire no less than 51% of Jiangxi Xing Lithium Technology Co., Ltd. (hereinafter referred to as "Xing Li Technology") held by Jiangxi Tongan. Upon completion of the above transaction, the company will hold a stake of not less than 51% in Xingli Technology.

According to the announcement, Xingli Technology was established on August 10, 2017 with a registered capital of 39 million yuan, mainly engaged in the collection, reserve, mineral processing, processing and sales of lithium ore, lithium mica, lithium ceramic stone, lithium feldspar, tantalum, niobium and tin; lithium battery research and development; lithium battery industry project investment and product development, sales, consulting and planning; lithium power new energy and other mineral resources industry investment and management.

It is reported that Xing Li Technology has an annual selection of 400000 tons of lithium-bearing porcelain stone ore efficient comprehensive utilization project, located in Yifeng County, Jiangxi Province, Tongan Township Ejing Village Xinwu, covers an area of 75.03 mu, the annual output of lithium mica concentrate is about 40, 000 tons.

According to official information, Anzhong shares are mainly engaged in the research and development, manufacture, sales and service of coal, mining, construction and road construction machinery and equipment, and belong to the construction machinery manufacturing industry. Anzhong shares said that the company's acquisition is to open up new business plates, relying on the original main business of mining machinery, extending to the upstream concentrator. The capital of the company's equity acquisition is its own capital, and after the completion of the transaction, Xingli Technology will become a controlling subsidiary of the company.

It is worth noting that the rising sales of new energy vehicles have led to a continuous increase in battery capacity, superimposed by the shortage of lithium ore raw materials, leading to high lithium prices. According to SMM historical prices, lithium prices have continued to rise since October 2020, and the price of lithium carbonate has doubled since the beginning of 2021 alone.

In addition, the White Paper on the Development of China's New Energy vehicle Industry (2021) jointly issued by EVTank, Ivy Economic Research Institute and China Battery Industry Research Institute shows that the global shipments of power batteries for new energy vehicles will reach 158.2 GWH in 2020, and it is expected that the demand for power batteries will reach 919.4GWh by 2025.

In the above context, saddle heavy shares at this time into the lithium new energy track, may have its profound meaning.