Specialty chemical firm Albemarle (NYSE: ALB) has signed an agreement to acquire the lithium hydroxide and lithium carbonate conversion assets of Jiangxi Jiangli New Materials Science and Technology.
The transaction, which is expected to close by the end of Q1 2017, includes manufacturing assets located in Jiangxi and Sichuan, China, focused on the production of battery-grade lithium carbonate and lithium hydroxide.
Jiangli New Materials currently tolls lithium hydroxide and lithium carbonate for Albemarle, using spodumene from Albemarle’s Talison joint venture in Australia. The Jiangli assets have a total capacity of 15,000 metric tons of lithium salts per year, with the potential for future expansion.
“We believe this transaction will further solidify Albemarle’s leading position in the lithium industry, and accelerate our ability to meet our strategic goal of capturing 50% of the growth in the lithium industry,” said Albemarle VP David Klanecky. “This transaction will enable us to supply premium lithium salts to an expanded global customer base.”