China-based battery maker EVE Energy is reportedly planning to acquire a 28.1% stake in lithium producer Jinkulun Lithium Industry.

The two firms are also planning to establish a Qinghai-based joint venture (JV) to build a lithium chemicals project with an estimated investment of up to $277.8m (CNY1.8bn), reported Reuters.

The JV will be 80% owned by EVE and 20% by Jinkulun and build a plant with a capacity to produce 30,000tpa of lithium carbonate and lithium hydroxide, according to the news agency.

The first phase of the project will have a production capacity of 10,000t, with the overall construction work planned to be completed in 36 months.

EVE expects the new venture to improve the stability of its supply chains and reduce the impact of raw material price fluctuations, reported Reuters.

The latest move forms part of EVE’s efforts to secure ingredients such as lithium, which is required for batteries used in electric vehicles (EV).

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By GlobalData

Earlier, EVE purchased a minority stake in cobalt producer Zhejiang Huayou Cobalt and a 17% interest in a $2.1bn nickel and cobalt project in Indonesia.

Last month, a report said that Ganfeng Lithium is planning to build a lithium production plant in Fengcheng, Jiangxi province, China.

The plant is planned to be built in two phases. It will have an annual production capacity of 25,000t of lithium hydroxide, a chemical used in nickel-rich batteries, in the first phase.

As part of the proposed plan, the firm also intends to set up a JV in Fengcheng.