CANMAX announced on January 29 that a lithium hydroxide plant being developed by its subsidiary in Sichuan has entered the pilot production phase. The main pieces of equipment have been installed and calibrated. The production capacity of the plant is 60,000 tons per year for battery-grade lithium hydroxide.
On February 8, 2022, CANMAX disclosed that it was going to issue shares to specific investors in order to raise no more than RMB 4.6 billion. The proceeds were to be used for the followings: (1) supporting its Sichuan subsidiary in the development of the lithium hydroxide plant, (2) the acquisition of the first phase of a lithium hydroxide project owned by Weineng Lithium Industry Science and Innovation, (3) the acquisition of a 7% stake in Tianyi Lithium Industry, and (4) supplementing working capital. The first phase of Weining’s project has a production capacity of 25,000 tons per year. Both Tianyi Lithium Industry and Weining are based in Yibin, a city in China’s Sichuan Province.
CANMAX’s Sichuan subsidiary commenced the construction of its lithium hydroxide plant on May 2, 2022. The plant will manufacture lithium hydroxide (i.e., lithium hydroxide monohydrate) from lepidolite via a process involving sulfuric acid, causticizing reaction, cooling, and crystallization. The total investment in this project has come to RMB 2.5 billion.
CANMAX stated that the development of the lithium hydroxide plant has been on schedule, and the operation of the plant will move along in the phases that are set in the original plan. Going forward, the equipment in the plant will be further optimize so that a fully-loaded capacity will eventually be reached.
CANMAX also stated that the new plant will contribute significantly to its capability to supply battery-grade lithium hydroxide. This, in turn, will improve the company’s economies of scale and position in the market for materials used in Li-ion batteries.
Purposes of CANMAX’s Fundraising in 2022 (Unit: RMB 10,000)
|
Item |
Invested Amount |
Raised Amount |
|
Lithium hydroxide plant with 60,000 tons per year of production capacity |
250,000.00 |
240,000.00 |
|
First phase of lithium hydroxide project owned by Weineng Lithium Industry Science and Innovation |
96,973.34 |
82,000.00 |
|
7% stake in Tianyi Lithium Industry |
98,000.00 |
98,000.00 |
|
Working capital |
40,000.00 |
40,000.00 |
|
Total |
484,973.34 |
460,000.00 |
This article is a translation of a Chinese article posted by TrendForce. It contains information that is either sourced from other news outlets or accessible in the public domain. Some Chinese names are transcribed into English using Hanyu Pinyin.
