CITIC Guoan Plans JV Plant for Battery Grade Lithium Carbonate      

CITIC Guoan Information Industry Co., Ltd. (SZ: 000839) said on September 7th that its unit, CITIC Guoan (Qinghai) Co., Ltd. has signed an agreement with Chengdu CHEMPHYS Chemical Co., Ltd. to cooperate on the investment, manufacture and sales of battery grade lithium carbonate, and to set up a new plant in the CITIC's Salt Lake Production Base at Xitai, Qinghai province.
   The JV is expected to start production of battery grade lithium carbonate products at the end of 2009, and plans to produce more than 500 tons of battery grade lithium carbonate in 2010. And it will share two sides' marketing channels to swiftly offer products to its customers, also is likely to introduce additional strategic partners with good conditions to jointly develop related products.
   Chengdu CHEMPHYS is a high-tech specialist in the manufacture of high-purity, specialty and functional chemical powder materials. It is China's largest exporter and manufacturer for high purity lithium carbonate and high purity lithium hydroxide, the key materials for electrolyte and electrode in new energy batteries.
   CITIC Guoan said the partnership between CITIC Guoan and Chengdu CHEMPHYS enables battery grade lithium carbonate plant to complement each other in resources, technology and marketing channels. CITIC Guoan's output of lithium carbonate is about 25 to 30 tons per day now and is estimated at 5 000 tons in 2009.
   By this cooperation, CITIC Guoan has capability of producing battery grade lithium carbonate using part of produced lithium carbonate as raw material, and this will extend its downstream product portfolio and further push forward its sales. As battery grade lithium carbonate, now being sold at around RMB45 000 per ton, represents better profit margin.