CNDL，SVOLT and EVE form partnership to invest lithium salt project in Sichuan, China

On June 13, EVE, Sichuan New Energy Power Co., Ltd. (hereinafter referred to as CNDL) and SVOLT Energy Technology Co., Ltd signed a cooperation agreement in Chengdu, announcing form a joint venture company to invest in the construction of a 30,000-ton/year lithium salt project in the Deyang-Aba Ecological Economic Industrial Park to speed up the layout of the lithium battery industry in Sichuan. Dr. Liu Jincheng, Chairman of EVE, Wang Cheng, Chairman and General Manager of CNDL, and Yang Hongxin, Chairman and CEO of SVOLT attended the signing ceremony.

Dr. Liu Jincheng, Chairman of EVE, said, “The new energy vehicle industry is in a stage of explosive growth. We must seize the rare opportunity given by the times and the country and cooperate with more industry partners to achieve sound development together and contribute to the development of Chinese new energy industry.”

Wang Cheng, Chairman of CNDL, and Yang Hongxin, Chairman and CEO of SVOLT, also said, this cooperation has created a new model of mutual cooperation between lithium battery enterprises. In the future, we will cooperate with more industry partners to promote the power battery industry to a new pattern of mutual benefit and healthy competition，and jointly promote the layout of the industrial chains of lithium batteries to achieve win-win results.”

As the core raw material of power batteries, the price of lithium salt continuously rose in recent years which subjected to multiple factors such as demand, supply and development cycle. In this investment agreement, the three parties agreed and determined that the joint venture will invest to build a production line with an actual annual production capacity of 15,000 tons of battery-grade lithium.

The cooperation will fully integrate the advantageous of all parties; deepen the cooperation in the field of lithium battery industry, focusing on the production of lithium hydroxide and lithium carbonate with market competitiveness.

The joint venture company will give priority to the supply to three parties and its subsidiaries, which improve the layout of the upstream battery raw material industry chain, stabilize the supply of raw materials, and further enhance the company's core competitiveness and profitability. This is completely in line with the company's industrial layout and strategic development plan.