Monday, September 20, 2021

China's booming electric car market prompts lithium producer and battery assembler to raise funds for expansion - Yahoo Finance

Last updated Tuesday, September 14, 2021 05:30 ET , Source: NewsService

One of the world's largest producers of lithium, as well as its biggest customer in the assembly of lithium-ion battery packs, have announced separate fundraising plans to expand their production amid soaring worldwide demand for the renewable energy source in the booming electric car industry.

Tianqi Lithium Corporation, based in the Sichuan provincial capital of Chengdu, was given the go-ahead by its seven-member board to offer 20 per cent of its enlarged capital in an initial public offering (IPO) in Hong Kong, reviving a plan that was shelved three years ago. Based on the 190 billion yuan (US$29.5 billion) value of Tianqi's yuan-denominated A shares listed on the Shenzhen Stock Exchange since 2010, the Hong Kong offering could be valued at US$850 million.

Contemporary Amperex Technology (CATL), the world's biggest assembler of lithium-ion battery packs and a Tianqi customer, said last month that it was planning to raise 58.2 billion yuan through a private share placement to finance the construction of new battery plants.

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Tianqi, which may increase the volume of its IPO by 15 per cent if an overallotment option is exercised, said it plans to use the proceeds from the sale for expanding its production capacity. The company...

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