On the evening of September 22nd, Shengxin Lithium Energy (stock code: 002240) made a public announcement, revealing its intention to acquire a 21% stake in Sichuan Qicheng Mining Co., Ltd. This strategic move will be executed through its wholly-owned subsidiary, Sichuan Shengtun Lithium Industry Co., Ltd., with a hefty cash outlay of 1.456 billion yuan. Upon completion of the transaction, Shengtun Lithium Industry's ownership stake in Qicheng Mining will surge to 70%, thereby securing a controlling interest.
The crown jewel of Qicheng Mining's asset portfolio is the mining rights to the Murong lithium mine, which is held by its controlled subsidiary, Huirong Mining Co., Ltd., located in Yajiang County. This mine boasts proven reserves of 989,600 tonnes of Li₂O, with an impressive average grade of 1.62% and a production capacity of 3 million tonnes annually. Currently, the mine is in the midst of development and construction.
Shengxin Lithium Energy clarified that the primary objective of this acquisition is to bolster the security of its lithium resource supply chain and elevate its self-sufficiency rate in lithium raw materials.