Actively participate in the development of lithium resources! Western Mining intends to accept the 27% stake in Lithium Resources Company today.

SMM March 1: last night, Western Mining announced that the company intends to accept the controlling shareholder Xikuang Group's 27% stake in lithium resources company, actively participate in the development of lithium resources, involved in the lithium battery new materials industry. The transaction price is 3.334 billion yuan. Upon completion of the deal, Western Mining will own a 27 per cent stake in Lithium Resources.

According to the announcement, the lithium resources company is currently mainly engaged in Dongtai Jinel salt lake lithium resources development, processing and production of lithium carbonate products. At present, Lithium Resources Company has built and operated a battery-grade lithium carbonate production line with an annual production capacity of 10,000 tons. At the same time, Qinghai Lithium Industry, a subsidiary of the company, operates an annual lithium carbonate production line with an annual capacity of 10,000 tons. Moreover, as early as 2016, the company's annual production capacity of 30,000 tons of lithium carbonate has been put on file, and it is expected to build and increase the annual production line of 10,000 tons of lithium carbonate within one year. At that time, the company will form an annual production capacity of 30,000 tons of lithium carbonate, ranking among the forefront of domestic lithium carbonate production enterprises. According to previous statistics, the company produced a total of 9510 tons of battery-grade lithium carbonate products from January to November 2021.

In addition, through the application of salt lake brine ion selective migration technology to synthesize lithium carbonate, Lithium Resources Company has successfully used Dongtai Jinel Salt Lake resources to produce high-quality lithium carbonate products, which are widely used in lithium downstream industries and have been unanimously recognized by customers.

Tibet Mining believes that the current new energy vehicle and lithium battery new materials industry is in the stage of rapid development, and there is huge room for development in the future. Battery-grade lithium carbonate has also risen from less than 40, 000 yuan at the end of 2020 to about 468000 yuan / ton on February 28, 2022, which is enough to show its popularity. Tibet Mining believes that with the gradual release of the production capacity of the lithium resources company, its operating performance has rapidly entered a period of explosion, and this investment will bring long-term profit contribution to the company and become an important profit growth point for the company.

"Click to order to view the spot historical price of SMM new energy products.

Referring to this deal, Tibet Mining said that as a leading mining enterprise in Qinghai Province, it is necessary for the company to actively respond to the state's call to integrate into Qinghai Province to build a world-class salt lake industrial base and to participate in the development of salt lake resources with national characteristics and advantages in Qinghai Province.

As soon as the news came out, western mining stocks jumped high today, opening the daily limit at one point in intraday trading, but then shaken back to close at noon, up more than 4.6% to 17.06 yuan per share.