China Minmetals Corp. will take control of a province-backed lithium company in a bid to speed development of a “world-class” industry extracting the battery material from salt lakes in the far west of the country.
Qinghai province, covering a vast sweep of northwestern China, hosts many of the country’s lithium-bearing salt lakes. The Minmetals takeover will “accelerate construction of a world-class salt lake industry base,” said Qinghai Salt Lake, which is currently controlled by provincial authorities. Its shares rose more than 8% after the announcement.
The Minmetals takeover will “accelerate construction of a world-class salt lake industry base,” said Qinghai Salt Lake, which is currently controlled by provincial authorities. Its shares rose more than 8% after the announcement. The global lithium industry is going through a turbulent phase with prices crashing amid a deepening supply glut.
The restructuring has been under discussion since at least April, and suggests a move by the central government to push for a bigger role in building out a key part of the domestic lithium sector. Qinghai province, covering a vast sweep of northwestern China, hosts many of the country’s lithium-bearing salt lakes.
The new company’s registered capital will be 10 billion yuan ($1.4 billion). The restructuring has been under discussion since at least April, and suggests a move by the central government to push for a bigger role in building out a key part of the domestic lithium sector.
The global lithium industry is going through a turbulent phase with prices crashing amid a deepening supply glut. Still, much more production will be needed in coming decades to support demand from batteries for electric vehicles and energy storage.
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