Investments

China’s XTC New Power plans $1.6 bln battery materials funding

Sept 16 (Reuters) – XTC New Power Supplies , a unit of Chinese language metals and uncommon earths producer Xiamen Tungsten (600549.SS), stated on Thursday it deliberate to speculate a minimum of 10 billion yuan ($1.55 billion) in a lithium battery supplies mission in Sichuan province.

Battery demand is booming in prime world auto market China, the place gross sales of latest power autos leapt 182% year-on-year in August, prompting a flurry of funding in new capability to supply battery components. learn extra

XTC New Power stated in a submitting it signed a letter of intent with Yaan Financial and Technological Growth Zone in Sichuan, southwest China, to construct a plant that can ultimately produce 100,000 tonnes of lithium iron phosphate and 60,000 tonnes of ternary supplies yearly.

Ternary refers back to the mixture of three metals utilized in lithium-ion battery cathodes, reminiscent of nickel, cobalt and manganese.

Yaan is already a lithium manufacturing base for Tesla (TSLA.O) provider Yahua (002497.SZ), whereas Tianqi Lithium (002466.SZ) can be headquartered in Sichuan.

The 1.2 billion yuan first section of the lithium iron phosphate part may have annual output of 20,000 tonnes, XTC New Power stated, noting it doesn’t at present produce that materials. It’s anticipated to be put into operation in 2023.

The primary section of the ternary supplies part is slated to return on line in 2024 and also will produce 20,000 tonnes per 12 months. It would contain funding of two.2 billion yuan and embrace a ten,000 tonnes-per-year nickel and cobalt smelter for battery recycling.

The timing of subsequent investments can be primarily based on market circumstances, stated XTC New Power, including {that a} feasibility research nonetheless must be introduced to its board and that financial institution loans could be taken out to fund the mission.

XTC New Power was previously the battery supplies division of Xiamen Tungsten, its greatest shareholder, however has been an organization in its personal proper since 2016.

Reporting by Tom Daly; Enhancing by Steve Orlofsky

Our Requirements: The Thomson Reuters Belief Ideas.

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