Yiwei Lithium Energy plans to build a project with an annual output of 30,000 tons of Lithium Carbonate and Lithium hydroxide in Jin Kunlun.

Yiwei Lithium Energy (300014.SZ) announced that the company intends to acquire Jinkunlun Lithium Industry Co., Ltd. (hereinafter referred to as "Jinkunlun"), whose main business is lithium metal, with a planned annual production capacity of 3000 tons, with an annual production capacity of 1000 tons), and signed an "investment agreement" with Jin Kunlun. The two sides intend to cooperate to set up a joint venture company in Qinghai Province, with a phased investment of no more than 1.8 billion yuan to build an annual production capacity of 30,000 tons of lithium carbonate and lithium hydroxide. The first phase is to build a project with an annual output of 10,000 tons of lithium carbonate and lithium hydroxide.

The registered capital of the joint venture company is proposed to be 180 million yuan. Among them, the company subscribes to contribute RMB 144 million and holds 80% of the equity of the joint venture company; Jin Kunlun subscribes to contribute RMB 36 million and holds 20% of the equity of the joint venture company.

The announcement said that the establishment of a joint venture with Jin Kunlun to build a project with an annual output of 30,000 tons of lithium carbonate and lithium hydroxide aims to give full play to their respective advantages and resources and focus on the production of high-quality lithium carbonate and lithium hydroxide, which will help to improve the stability of the company's supply chain and reduce the adverse impact of raw material price fluctuations on the company.