Yiwei Lithium Energy (300014) announced that it intends to sign an Investment Agreement with Zijin Lithium (Hainan) Co., Ltd. and Shandong Ruifu Lithium Co., Ltd.
The three parties intend to cooperate to establish a joint venture company in Hunan to invest in the construction of a lithium salt project with an annual output of 90,000 tons in phases, and the total investment scale of the project is expected to be 3 billion yuan.
The announcement shows that the first phase of the project will build a project with an annual output of 30,000 tons of lithium carbonate salt, corresponding to an investment of about 900 million yuan.
Including the registered capital of 300 million yuan. Ewell Lithium Energy, Zijin Lithium and Ruifu Lithium hold 26%, 34% and 40% of the shares respectively.
According to the implementation needs, the parties to the agreement negotiate to determine the progress of project construction and the expansion of production capacity, and can increase the capital of the joint venture company to 1 billion yuan in stages and at the same time according to their respective shareholding ratios.
According to the data, Zijin Lithium is a wholly-owned subsidiary of Zijin Mining, an A-share listed company.
Ewell Lithium Energy said that this cooperation will fully integrate the superior resources of all parties, deepen the cooperation between all parties in the field of lithium battery industry, the company and its designated entities exclusively enjoy the underwriting right to 66% of the lithium salt finished products of the joint venture company, which is conducive to the company’s continuous improvement of the upstream battery raw material industry chain layout, enhance the stability of the supply chain, and then continue to enhance the company’s core competitiveness and profitability, in line with the company’s industrial layout and strategic development plan.
Since the beginning of this year, Ewell Lithium Energy has announced a number of investment matters.
In January, the company announced that according to the development strategy and business needs, the company and its subsidiary Huizhou Yiwei Power Battery Co., Ltd. intend to invest in the construction of power battery R & D center building project.
Among them, the company invested about 700 million yuan to build a “power battery research and development center”, and Huizhou Yiwei Power invested about 236 million US dollars (about 1.6 billion yuan) to build a “common technology research and development and innovation service platform for electrochemical energy storage and power battery industry”.
In April, Ewell Lithium Energy announced that it intends to sign a “Project Investment Cooperation Agreement” with the Administrative Committee of Chengdu Economic and Technological Development Zone on matters related to the company’s investment in the construction of power energy storage battery projects in Chengdu Economic and Technological Development Zone, and invest in the construction of an annual output of 50GWh power energy storage battery production base and Chengdu Research Institute in two phases, with a total investment of 20 billion yuan.
Ewell Lithium Energy announced that it intends to sign an Investment Agreement with the Management Committee of Yuxi High-tech Zone in Yunnan Province on matters related to the company’s investment in the construction of lithium battery production projects in the Longquan Area of Yuxi High-tech Zone.
The project plans to invest 3 billion yuan to build a 10GWh power storage battery project, of which 2.1 billion yuan will be invested in fixed assets.
Ewell Lithium Energy announced that it intends to sign an investment agreement with the Qujing Municipal People’s Government and the Qujing Economic Development Zone Management Committee on matters related to the company’s investment in the construction of the “10GWh annual output of 10GWh power energy storage battery project” in the Qujing Economic Development Zone Management Committee.
The total investment of the project is about 3 billion yuan, and the investment in fixed assets is about 2.3 billion yuan.
Coupled with the project announced on July 21, the total investment of the above project has exceeded 30 billion yuan.
On the evening of July 21, Ewell Lithium Also announced that in order to further broaden financing channels, optimize the financing structure, and better meet the needs of future business development, it intends to apply to the China Interbank Market Dealers Association for the registration of non-financial enterprise debt financing instruments in the interbank bond market of not more than RMB 2 billion, and the varieties of issuance include medium-term notes, short-term financing bonds, and ultra-short-term financing bonds.
At the investment and customs event held on May 6, some investors asked how the company will deal with future overcapacity by vigorously expanding production capacity throughout the industry.
Ewell Lithium Energy replied that this year and next two years is the company’s power battery construction year, and the production capacity under construction is clear customer demand. The company is confident that in the next few years, the power battery business will maintain rapid growth.
Ewell Lithium Energy plans to cooperate in the construction of a lithium salt project with an annual output of 90,000 tons This year, the cumulative investment in the project announced exceeded 30 billion yuan, July 21, 2022
