It is reported that on June 16, lithium mining giant Tianqi Lithium Industry is entering a hearing process to successfully list shares in Hong Kong, raising US $10 million to US $1.5 billion, or formally listing on the main board in July, Hong Kong Wande News Agency reported. Morgan Stanley, China International Capital Corporation and China Silver International served as co-sponsors.

Tianqi continues to raise funds to expand production

According to the Wood Mackenzie report, Tianqi Lithium is the world's largest lithium producer in terms of 2020 production; Tianqi Lithium ranks third in terms of 2020 lithium revenue; and Tianqi Lithium is the fourth largest producer of lithium compounds in the world and the second largest in Asia in terms of 2020 production.

At present, the products of Tianqi lithium industry are mainly divided into two categories: one is lithium concentrate products, the other is lithium compounds and derivatives products. Among them, lithium concentrate products include chemical grade and technical grade lithium concentrates, while lithium compounds and derivatives include lithium carbonate, lithium hydroxide, lithium chloride and metal lithium.

Production capacity. Tianqi Lithium operates three domestic production plants in Shehong, Sichuan Province, Zhangjiagang, Jiangsu Province, and Tongliang, Chongqing, which together can produce all kinds of lithium compounds and derivatives, with a total annual capacity of 44800 tons as of September 30, 2021. According to the Wood Mackenzie report, as of the last practical date, Tianqi Lithium's Zhangjiagang plant is the only fully automated battery-grade lithium carbonate production plant in operation in the world.

Is it a trend for the whole car factory to take a stake in the lithium mining company?

Tianqi Lithium Industry began to list in Hong Kong in 2018. In the same year, Tianqi Lithium spent $4.226 billion to acquire a 23.77% stake in Chilean salt lake giant SQM. To close the deal, Tianqi Lithium borrowed a total of $3.5 billion.

To this end, Tianqi lithium industry has also become a high debt, capital crisis, and finally suspended the H-share issuance work.

The Tianqi lithium industry IPO subscription, there are rumors that Tesla, Inc. will also participate, but has not been confirmed.

Tesla, Inc. CEO Musk said in a social media reply to lithium price data in April that lithium prices are ridiculously high and that Tesla, Inc. may have to start personally involved in lithium mining and refining on a large scale unless costs are improved.

Wei Xiaoli also jointly invested in battery maker Xinwanda in February this year; in March, Sheng Xin Li Neng announced that the company plans to introduce BYD as a strategic investor through a targeted stock offering, raising no more than 3 billion yuan. After the completion of the offering, BYD's stake in Shengxin LiNeng is expected to exceed 5%. Previously, Volkswagen Group (China) has also expressed its intention to form joint ventures with Huayou Cobalt and Qingshan Group to ensure the supply of nickel and cobalt. Help Volkswagen further optimize battery costs.

The performance of lithium mining companies has soared.

According to Tianqi Lithium's 2021 annual report, Tianqi Lithium's revenue in 2021 was 7.663 billion yuan, an increase of 136.56 percent over the same period last year, while its net profit was 2.079 billion yuan, an increase of 213.37 percent over the same period last year. Among them, Tianqi Lithium Industry's revenue in the fourth quarter was 3.79 billion yuan, almost the same as the revenue of the previous three quarters.