Three state-owned enterprises have set up lithium companies with a registered capital of 90 million yuan

Western Lithium is jointly established by Tianfu Mining Investment, a wholly-owned subsidiary of Sichuan Natural Resources Investment Group, Sichuan Longaconda (600039), a subsidiary of Sichuan Development (Holding) Co., LTD., and Sichuan Luqiao (600039), a subsidiary of Shudao Investment Group Co., LTD., with a registered capital of 90 million yuan and a registered place of Malkang. The business scope includes mineral resources exploration; Mining of non-coal mine mineral resources; Commonly used non-ferrous metal smelting.

It is reported that the western lithium industry will achieve the deep integration of location advantages and professional advantages through "resources + capital + industry", enhance the right of discourse, dominance and control of provincial state-owned enterprises in the exploration and development of lithium resources and industrial development, and give full play to the supporting role of state-owned enterprises in important energy resources. Optimize the layout structure of state-owned capital in the industrial chain supply chain and key links of Sichuan lithium mineral resources, and further enhance the core functions and core competitiveness of state-owned enterprises in key fields in our province.

At the same time, the western lithium industry will base on the abundant spoxene resources in the Kerin area of Aba Prefecture, seize the major opportunity of a new round of mineral exploration and breakthrough strategic action, increase the exploration and development of lithium resources, adhere to the overall idea of resource-leading, industrial extension, scientific and technological innovation, value enhancement, and improve the level of industrialization and clustering ability. Help to build a lithium battery industry cluster with important international and domestic influence and competitiveness.

In other words, this is another layout of Sichuan in the field of lithium resources.

It is understood that Sichuan is the main resource area of domestic spodumene ore, accounting for more than 50% of the country's lithium ore, mainly concentrated in the two major mining fields of methyl Ka in Ganzi Prefecture and Kerin in Aba Prefecture. At present, there are six major mines with mining rights, namely Kangding Meiska, Delanongba, Yajiang Cuola spodumene mine in Ganzi Prefecture, and Lijiagou, Malkangdang Ba, and Ye Longgou spodumene mine in Aba Prefecture.

On February 8 this year, the Sichuan Provincial People's Government issued the "Sichuan Province Mineral Resources Master Plan (2021-2025)" and clearly pointed out that by 2025, the total annual mining of lithium ore in Sichuan will reach 1 million tons, an increase of 50% compared with 2020; By 2035, industrial clusters such as the lithium mine in western Sichuan will be formed.

The western lithium industry is locked in one of the spodumene region of Aba prefecture Keerin mine field, which shows Sichuan's determination to develop lithium resources and build industrial clusters.

Turn to Western Lithium's three shareholders, Tianfu Mining Investment, Chuanfa Dragon Python and Sichuan Luqiao, for a glimpse of their respective strengths.

Tianfu was founded in May last year and is controlled by the Sichuan provincial Department of Natural Resources, making it the youngest of the three shareholders.

Chuanfa Dragon Python is a domestic phosphating industry enterprise. Since 2021, it has made use of its own resources and cost advantages to lay out lithium iron phosphate materials. At present, it has settled related projects of lithium iron phosphate in Deyang, Panzhihua, Xiangyang and Jingzhou.

Founded in 1999, Sichuan Luqiao is one of the largest transportation infrastructure companies in Sichuan Province, covering the business of lithium battery new energy, highway and bridge engineering construction and investment operation, hydroelectric power generation and other business sectors.

In the field of lithium batteries, in 2018, Sichuan Road and Bridge, Keneng Lithium Power and Luran Group jointly invested 800 million yuan to set up Sichuan New Lithium Think Energy Technology Co., LTD., and jointly made efforts in the field of ternary battery cathode materials and precursors. In October 2021, BYD made a strategic investment in Sichuan Road and Bridge with an investment of 200 million yuan.

In general, although Chuanfa Dragon Python and Sichuan Luqiao belong to cross-border enterprises, they have certain experience in the development of lithium mineral resources and the production of lithium salt materials.

Sichuan also because of the superior lithium resource conditions, has gathered lithium mining, basic lithium salt, battery materials, power batteries and battery recycling and other industrial chain of the upstream and downstream many key enterprises, including Ningde times, BYD, Zhongchuang New Aviation, Yi Wei Lithium energy, Honeycomb energy in recent years in Sichuan Province also carried out a large number of investment, cooperation projects

It is worth mentioning that on July 11, Sichuan Times New Energy Resources Co., LTD., a wholly-owned subsidiary of Ningde Times, established Markang Times Mining Co., LTD., which is also registered in Markang.