Battery maker Guoxuan Hi-Tech has signed a series of deals to make China’s Anhui Province an “influential lithium battery new energy industry base”.
The China company will invest 12 billion yuan ($1.8 billion) to build a series of battery chain projects including recycling and an ‘up stream raw materials’ supply for lithium-ion in Feidong County, China.
The recycling and raw materials production project will be spread over 2,280 acres and is due to be completed, and put into production, within two years.
The project will ensure Guoxuan has enough raw materials to reach its target of 100GWh of battery production in 2025.
Last May, the company received a €1.1 billion ($1.2 billion) investment from Volkswagen to become its certified supplier. The deal included the two parties carring out battery technology innovation and research, and developing Hefei and Anhui Province into China’s electric vehicle industry.
On 24 March, Guoxuan signed an investment cooperation agreement with Yichun City in Hefei to establish Yichun as an “influential lithium battery new energy industry base”.
Part of the deal saw Guoxuan Hi-Tech and Yichun Mining sign an agreement to jointly invest 100 million yuan ($15 million) to create the joint venture Yichun Guoxuan Mining.
Guoxuan Hi-Tech will hold 51% of the shares and Yichun Mining the rest.
The purpose is to jointly invest in the development of mineral resources and ensure the company's supply of lithium resources, said Guoxuan.
In addition, Guoxuan Hi-Tech and Yichun Economic and Technological Development Zone signed an investment cooperation agreement to build a Yichun Lithium Battery Industrial Park project
The park will extract adn process lithium carbonate resources, and develop industrialisation projects such as lithium battery R&D and manufacturing.
The first phase of the project should be put into operation by the end of 2022.