Gotion Hi-Tech, a Chinese power battery manufacturer, announced on Monday that it had signed a strategic cooperation agreement with Jujuy Energía y Minería Sociedad del Estado (JEMSE), an Argentinian state-run mining company. The two sides have decided to carry out cooperation for the protection of local lithium mining resources, the construction of a lithium carbonate refinery and the expansion of downstream business.
The province in Argentina where JEMSE is located has highly concentrated salt lake resources, and the firm brings rich mining experience involving the extraction of lithium from brine at a low cost. JEMSE is committed to improving lithium extraction technology, mining capacity and new energy utilization projects such as photovoltaic energy storage. At present, JEMSE has established close cooperation with enterprises in France, Australia, Canada, the US, Japan and China.
According to the agreement, Gotion Hi-Tech and JEMSE will jointly build a battery-grade lithium carbonate refinery. JEMSE will provide mining rights of potential lithium mineral resources covering about 17,000 hectares to ensure resource supply. The two sides will also carry out downstream business cooperation within the lithium battery industry, including cathode materials and battery manufacturing, to jointly explore European and American markets.
Li Zhen, Chairman of Gotion Hi-Tech, said that the two sides will promote the scientific development and utilization of lithium resources. He also expressed hope that the two parties will cooperate in various aspects of lithium carbonate resource guarantees and battery manufacturing line construction in advance, jointly promoting Gotion to settle in Argentina and the furtherment of its globalization strategy.
Gotion Hi-Tech’s overseas business has maintained a rapid development trend in recent years. According to its financial report released in April, the firm’s overseas revenue increased by 232.58% to 528 million yuan ($78.6 million) in 2021, accounting for 5.1% of total revenue. The company also plans to issue Global Depositary Receipts (GDR) and apply for a public listing on the Swiss Stock Exchange.