Yongxing Materials has announced plans to raise up to 1.1 billion yuan (around $154.9) to expand its production capabilities in the lithium battery materials sector. The funds will be directed towards a new project for producing 20,000 tons annually of battery-grade lithium carbonate and enhancing the mineral processing capacity for lithium ore to 1.8 million tons per year. This initiative will be spearheaded by Jiangxi Yongxing New Energy, a wholly-owned subsidiary, with each project expected to take 12 months to complete.
The strategic investments are intended to solidify Yongxing Materials’ foothold in the lithium battery materials market by establishing a complete industry chain for battery-grade lithium carbonate production. This move is seen as a response to the surging demand driven by the growth in electric vehicles and other high-energy applications.
Historically, Yongxing Materials has strengthened its market position through acquisitions and expanding control over critical mining resources. This includes purchasing Yongcheng Lithium Industry and integrating operations with Huaqiao Mining to secure an annual production capacity of 10,000 tons of lithium carbonate, which it supplies to major companies in the sector.
Furthermore, the firm has ventured into the lithium-ion battery market, investing 1 billion yuan in a project to produce advanced batteries with extended lifespans and the capability to operate across a broad temperature range. This project, part of a larger 2GWh plan with an initial phase of 200MWh, focuses on producing square aluminum shell batteries, battery modules, and packs, targeting applications across power batteries, energy storage, and consumer electronics.
The significant expansion in Yongxing Materials’ operations and its entry into high-end battery manufacturing underscore the broader industry trend towards enhancing capacities to meet the escalating global demand for lithium products, essential for the growing electric vehicle and renewable energy sectors
