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Infund Holding Plans to Build An Annual 30,000-ton Lithium Carbonate Project

Infund Holding recently announced that it plans to jointly set up a lithium carbonate extraction company with Sino-Agri Group, CNAMPGC Holding and Xingyuan Potassic Fertilizer, which will specialize in the extraction and preparation of industrial lithium carbonate. The joint venture plans to invest in an annual 10,000-ton industrial lithium carbonate production project. After the project is completed and reaches its designed capacity, the joint venture will increase investment until it reaches the annual capacity of 30,000-ton lithium carbonate. Infund Holding said this partnership will enhance the company's competitive advantage in the new energy industry and further establish its position in the lithium industry.

Since 2017, Infund Holding has regarded new energy industry as its development direction. In the first half of the year, the company and its partners jointly set up Infund New Energy Technology Co., Ltd. (INET) to enter the lithium industry. INET has an advantageous technology of lithium extraction from saline lake brine. The planned lithium carbonate extraction project will promote the industrialization of this technology.

It's reported that INET's lithium extraction technology is suitable for all kinds of saline lakes, and in particular, it can solve the technical problems in lithium extraction from saline lakes with a high mg / Li ratio. In addition, INET adopts a new formula and manufacturing process to produce lithium-ion-rich materials. INET's lithium extraction technology makes efficient and low-cost lithium extraction possible. This partnership will promote the application of this technology. Western Mining pointed out that Xingyuan Potassic Fertilizer, an affiliated enterprise of Sino-Agri Group and CNAMPGC Holding, is located in the Dalangtan mine area in the northwest of Haixi Prefecture of Qinghai Province. According to statistics on proven resource reserves, Dalangtan Liangzhong Mine Xingyuan Company, a subsidiary of Xingyuan Potassic Fertilizer, holds 6.7468 million tons of solid potassium chloride reserves, 33.9604 million tons of liquid potassium chloride reserves and 2.7964181 billion cubic meters of brine. In theory, these reserves can last more than 30 years as per estimation based on the annual capacity of 1-million-ton potassic fertilizer.

According to the resource integration plan of the Dalangtan mine area, the Haixi Prefecture Government will support CNAMPGC Holding, a shareholder of the joint venture, to spearhead a Dalangtan saline lake integration program. In the future, Xingyuan Potassic Fertilizer may gain mining rights of about 600 square kilometers on the periphery of Dalangtan. Abundant resources will guarantee the joint venture's extraction and preparation of lithium carbonate.

Worth noting is that this partnership will bring in an important strategic investor. According to the cooperation agreement, Sino-Agri Group or CNAMPGC Holding plans to become Infund Holding's strategic investor through methods including buying stocks from the secondary market, selling assets and participating in private placements, and will carry out comprehensive strategic cooperation with Infund Holding.

According to the agreement, Xingyuan Potassic Fertilizer's brine resources will be exclusively supplied to the joint venture and its wholly-owned subsidiaries and used by them free of charge within five years after the lithium carbonate project is officially put into production.

Infund Holding said, "This partnership will give full play to the advantages of all parties. By leveraging Infund Holding's preliminary lithium extraction technology and Xingyuan Potassic Fertilizer's brine resources, we will focus on developing business activities related to lithium carbonate preparation and Xingyuan Potassic Fertilizer's technology of lithium extraction from brine, thus achieving win-win development through complementary advantages."

According to the announcement, the planned joint venture will first build an annual 10,000-ton industrial lithium carbonate production project. After the project is completed and reaches its designed capacity, the joint venture will increase investment with the profit generated by the project until it reaches the annual capacity of 30,000-ton lithium carbonate.

Data show that the demand for lithium carbonate mainly comes from 3C products, vehicle electrification and energy storage sectors. In the context of policy-driven rapid market development, the total demand for lithium carbonate from 2017 to 2020 is expected to maintain an annual growth rate of above 10%.

"The joint venture is positioned as a manufacturer that extracts lithium carbonate using advanced technology and its long-term goal is to build itself into a high-end technology service provider for lithium-related production enterprises both at home and abroad." Infund Holding said it will strive to gain international pricing power of lithium products while focusing on lithium resource development and technology research and development to expand business and achieve multi-level development through a variety of forms such as technical cooperation and joint investment with industrial chain enterprises.