China Minmetals to Establish $1.41 Billion Lithium Miner in Qinghai

State-owned China Minmetals plans to create a 10 billion yuan ($1.41 billion) mining company in partnership with local firms in Qinghai, a lithium-rich province in northwestern China. The new entity, provisionally named China Salt Lake Industry Group, aims to develop a world-class production hub while bolstering national security around potassium and lithium resources.

Lithium, crucial for electric vehicle batteries and solar power panels, is a key focus for the joint venture, which will also target potassium, a material used in various battery applications. As part of the deal, the new company will acquire a 12.54% stake in Qinghai Salt Lake Industry, becoming its controlling shareholder. Qinghai Salt Lake Industry is currently managed by local authorities and holds the largest reserves of potassium and lithium in China.

China Minmetals will invest 5.3 billion yuan ($744 million) in the venture, which will engage in mining, exploration, and the production of lithium chemicals and other battery materials. Other investors include Qinghai State-owned Assets Investment Management and Qinghai Assets Supervision and Administration Commission.