Sinomine Resources Group, a top Chinese provider of battery-grade lithium fluoride, has announced its plans to expand its resources by acquiring a majority stake in a lithium ore mine in Mongolia for $20 million. The deal entails Sinomine buying 51% of a universal recycling technology lithium ore project in Mongolia’s Tsagan Chuluut region from Lithium Century, the project’s three shareholders.
This acquisition comes at a time when the demand for lithium, a key component in electric vehicle batteries, is expected to rise. While the project is still in its primary exploration stage, the prospecting rights cover over 332 hectares, and the lithium reserves may exceed 1.7 million tons of lithium ore, according to Sinomine. Only 10.5% of the area has been explored so far, and the exact lithium reserves are yet to be determined.
Sinomine has expressed its intent to issue a loan of up to $20 million for the geological exploration of the project. This investment aligns with the firm’s strategy to secure long-term, reliable lithium ore sources, and complements its position as the leading supplier of battery-grade lithium fluoride in China.
Lithium Century is a mining company established in 2013 with a focus on exploring and developing environmentally sustainable extraction of lithium in central Mongolia. Sinomine, on the other hand, was founded in 1999 and is not only the world’s biggest producer and supplier of cesium and rubidium but also the only producer of cesium formate globally.