Dazhong Mining (001203.SZ) plans to cooperate with Wanxiang Battery Materials and others to jointly build a project with an annual production of 200,000 tons of lithium salts, completing the layout of the entire lithium industry chain.

Dazhong Mining (001203.SZ) announced that the company plans to sign a tripartite "Investment Agreement" with the Meishan High-tech Industrial Park Management Committee and Wanhua Chemical Group (Sichuan) Battery Material Technology Co., Ltd. The company intends to cooperate with Wanhua Battery Material Company to invest in and construct a "20,000-ton lithium salt project" in the Meishan High-tech Industrial Park. The overall planned capacity of the project is 200,000 tons of lithium salt, to be constructed in three phases: Phase I with an annual output of 30,000 tons, Phase II with an annual output of 70,000 tons, and Phase III with a planned annual output of 100,000 tons. The total investment for Phase I and Phase II projects is 2.2 billion yuan, and the investment for Phase III will be financed by the cash flow generated from the production of Phase I and Phase II projects. The company plans to sign a "Joint Venture Agreement" with Wanhua Battery Material Company to jointly establish a joint venture company as the investment and construction entity for the Phase I "30,000-ton lithium salt project" mentioned above. The registered capital of the joint venture company is 300 million yuan, with the company providing 240 million yuan in cash (holding 80% of the shares) and Wanhua Battery Materials Company providing 60 million yuan in cash (holding 20% of the shares). The announcement stated that the company's construction of the lithium salt project aims to fully leverage the company's technical and resource advantages in mineral resource development, promote the extension of the company's lithium battery industry from upstream mining to midstream lithium salt smelting, build an integrated lithium industry chain layout of mining, selection, and smelting, and further enhance the added value of lithium resource products.