(Yicai Global) March 30 -- Yibin Tianyi Lithium Industry has agreed to source spodumene concentrate, a mineral used in the production of lithium-ion batteries, from a mining company in the Democratic Republic of Congo owned by Australia’s AVZ Minerals as the Chinese lithium battery raw material developer moves to ensure adequate supply as demand soars.

The Yibin, southwestern Sichuan province-based company will buy 200,000 dry metric tons of spodumene concentrate each year for the next three years from Dathcom Mining, its parent firm TA&A Ultra Clean Technology said yesterday.

This is on top of a 40 percent hike to a purchase order with Australian miner Pilbara Minerals made earlier this month to 430,000 tons over the next four years.

Tianyi Lithium, which is a joint venture between the country’s biggest electric car battery maker Contemporary Amperex Technology and anti-static, ultra-clean product maker TA&A Ultra Clean, has been cranking up production in recent years as the country’s new energy vehicle sector booms. It is building a CNY2 billion (USD305 million) battery-grade lithium hydroxide plant in southwestern Sichuan province that should start operating at the end of the year with an annual output of 45,000 tons per year.

The price of lithium salts used in lithium-ion batteries has also risen sharply in the last few months, and in the case of lithium carbonate has doubled, prompting processors to sign early purchase contracts to ensure supply.

TA&A Ultra Clean [SHE:300390] closed up 3.36 percent today at CNY32.26 (USD4.91), after hitting a five-year high of CNY32.80 in intraday trading. CATL [SHE:300750] gained 2.37 percent to finish at CNY318.98 (USD48.58) while AVZ International [ASX:AVZ] closed down 4.76 percent at AUD0.20 (USD0.15).

Editor: Kim Taylor