Two investors from China, Chengxin Lithium Group Co Ltd and Tsingshan Holding Group will invest in a lithium project in the country worth $350 million. The lithium plant will be used to meet demand from the electric vehicle battery sector.
Tsingshan turned to the lithium industry at a time when prices for the commodity soared amid rising sales of electric vehicles in China’s top market.
Chengxin said the partners would build a factory to make lithium chemicals at the Morowali Industrial Park in Sulawesi. The site is the center of several Chinese investment projects, including those to make nickel and cobalt, which are also used in electric vehicle batteries.
Chengxin said the plant will produce 50,000 tons per year of lithium hydroxide and 10,000 tons per year of lithium carbonate.
Chengxin said it would own 65% of the joint venture – called PT ChengTok Lithium Indonesia – and Singapore-founded Stellar Investment Pte would hold 35%.
A Chengxin investor relations official on Friday (25/9) said Stellar is an affiliate of Tsingshan.
Tsingshan did not respond to a request for comment.
Last week, South Korea’s LG Energy Solution and Hyundai Motor Group began construction of a factory to manufacture electric vehicle batteries in West Java worth $1.1 billion. [ah]