Tianqi board approves Chinese lithium company acquisition

By Albert Li
Published: Friday, 22 September 2017

Tianqi gets the go-ahead to acquire stake in Chongqing Kunyu.

Tianqi Lithium has been given the go-ahead to acquire a major stake in Chongqing Kunyu Lithium Co Ltd, following a majority vote by the Tianqi board of directors.

Following the transaction, Tianqi’s subsidiary Chengdu Tianqi Lithium will own 86.4% of Chinese producer Chongqing Kunyu Lithium.

Chongqing Kunyu is a lithium chemicals producer established in 2008 and supplies the aerospace, medical, battery, grease, special metal and the glass industries.  

Meanwhile, in a conference call with investors in August, Bo Li, secretary of the board, said the company’s Australian developments are reported to be moving smoothly.

An expansion to spodumene production at the company’s Australian facility, aimed at a total capacity of 1.34m is expected to be completed in 2019 Q2.

The company also expects to develop 24,000 tonnes of Australian lithium production capacity by October 2018, with a second stage of development to double that capacity, which is currently in feasibility report making stage.

Meanwhile, the company has located a confirmed site for a separate lithium hydroxide project at Suining in Sichuan, aimed at matching or exceeding the Australian projects capacity by 2020.

Tianqi also announced that its facilities in Zhangjiagang and Shehong have passed recent environmental inspections, allowing them to maintain stable production.