(Yicai Global) Nov. 14 -- Canmax will collaborate with lithium battery behemoth Contemporary Amperex Technology, to set up a joint venture with annual production of 40,000 tons, producing lithium carbonates and lithium hydroxides as raw battery materials in Yibin, in southwestern China's Sichuan province.

The company, based in Suzhou in China's eastern Jiangsu province, inked the investment agreement with CATL, headquartered in Ningde, in southeastern Fujian province, an investment fund and other partners yesterday, the domestically renowned supplier of static and micro pollution control solutions said in a statement yesterday, with the aim of gaining a foothold in new energy.

The JV's registered capital is CNY700 million (USD102.6 million) under the agreement, which the parties will contribute in cash. The company plans to invest CNY294 million for 42 percent of registered capital, the statement noted.

Shenzhen-based ChendaoCapital will hold 26 percent equity, world's largest electric vehicle battery maker CATL will claim 15 percent, while Tianyuan Group, a chemical maker in the JV's base of Yibin, will take a 10 percent stake.

The project's construction falls into two phases. The first will finish and go into operation by next year's end, with planned annual production of 20,000 tons, while the second, with the same annual output, is set to conclude by the end of 2021, per the statement.

The complex will feature novel production facilities and use the latest global advanced techniques for producing lithium carbonates, lithium hydroxides, lithium iron phosphates, ternary cathode materials for lithium batteries and other like products, the statement added.

Editor: Ben Armour