(Yicai) Feb. 10 -- Canmax Technologies, a Chinese supplier of battery materials, will invest over USD200 million to form a joint venture to develop two lithium mines in Nigeria, West Africa, securing raw materials despite falling commodity prices.

Canmax has signed an agreement with the government of Kebbi state in northwestern Nigeria and local mining company Three Crown Mines to establish the JV, the Suzhou-based firm announced recently. Canmax will hold 85 percent of the venture's equity, with Three Crown Mines holding the remainder.

The move demonstrates the Chinese firm's commitment to maintaining its core battery materials business despite plummeting product prices due to oversupply. The price of lithium carbonate, a key raw material, has fallen below CNY80,000 (USD10,949) per ton, down from a historical high of CNY600,000 (USD82,123) per ton in 2022.

Kebbi is one of Nigeria's top lithium regions. Exploration work for the related mining rights has almost been completed, and drilling results indicate promising prospects, according to Canmax. Throughout the project lifecycle, Canmax will underwrite all products of the JV, with prices to be determined later.

Founded in 1997, Canmax initially focused on providing electrostatic discharge control and cleanroom services. However, since transitioning into the new energy industry and forming a JV with Tesla supplier Contemporary Amperex Technology in 2018, its battery materials business has grown to comprise over 90 percent of its total revenue.

The market downturn has impacted Canmax's earnings. In the first three quarters of last year, the firm's net profit plunged 49 percent year-over-year to CNY923 million (USD126.3 million), while revenue decreased by 39 percent to CNY5.5 billion (USD752.8 million), according to the latest financial report.

Nevertheless, Canmax stated in its semi-annual report last year that it remains focused on high-quality lithium resources and continues to seek premium mining assets globally to ensure a stable supply of raw materials.

Editor: Emmi Laine