CCM: Jien Nickel to march into Li-ion battery materials segment 07-25-2016

On 8 July, 2016, Jilin Jien Nickel Industry Co., Ltd. (Jien Nickel, stock code: 600432) still recorded rises in share price (closed at USD1.30/share OR RMB8.63/share), marking the limit-ups in 4 consecutive days. This was mainly driven by its release of pre-proposal about private placement on 4 July.

Source: Baidu

Jien Nickel planned to issue <=660 million shares to <=10 targets, for <=USD616.58 million (RMB4.10 billion) in total.   

Strategically, the fund is for:

  • 1st phase carbonyl metal functional materials project – USD73.84 million (RMB491 million)
  • Li-ion battery cathode materials R&D and production base project – USD190.99 million (RMB1.27 billion)
  • Battery grade lithium carbonate project – USD162.42 million (RMB1.08 billion)
  • Loan payments – USD180.46 million (RMB1.20 billion)

“Now we are mainly involved in the business of nickel mining/ dressing/ smelting, and related chemicals production and sales,” stated Jien Nickel, “Recent years have been witnessing slowdown growths in demand for nonferrous metals and continuous expansion in supply.

Overall, the market has entered periodic downturns. This has confronted us with decreasing profits and increasing risks. So, it is necessary for us to carry out business transformation and upgrading and to make breakthroughs – to seize good development opportunities and to invest in new materials and alternative energy projects.”


Specifically, the Li-ion battery cathode materials R&D and production base project is to be started up by Jien Nickel’s subsidiary, Jilin Yarong Technology Co., Ltd. (Yarong Technology, 52.57% of shares). Its portfolio will mainly span lithium nickel cobalt manganate (NCM, 20,000 t/a), copper sulphate (1,310 t/a) and zinc sulphate (770 t/a).

Hopefully, it will make USD410.55 million (RMB2.73 billion, sales) and USD38.20 million (RMB254 million, profit) annually. The corresponding financial internal rate of return (after tax) will hit 21.77%.


Yarong Technology is mainly developing, producing and selling nickel-metal hydride battery (Ni-MH battery) and Li-ion battery cathode materials including spherical nickel hydroxide (2,000 t/a), cobalt-coated nickel hydroxide (2,000 t/a), NCM (1,000 t/a) and carbonyl nickel hydroxide (500 t/a).


The battery grade lithium carbonate project is to be launched by Quebec Lithium Inc. (Quebec Lithium), which was acquired by a subsidiary of Jien International Investment Ltd. The capital input this time will enable Quebec Lithium to reconstruct and upgrade its lithium ore mining and battery grade lithium carbonate production lines, to finally build up a production capacity of 20,000 t/a for 99.5% battery grade lithium carbonate.

It is predicted that the sales will reach CAD63.54 million (RMB326 million, CAD/RMB exchange rate @ 5.1307 on 1 July, 2016, sourced from the People’s Bank of China), of which the net profit will be up to CAD27.68 million (RMB142 million).

Quebec Lithium is running a La Corne lithium ore plant in Quebec. However the production was suspended in Oct. 2014 due to capital deficiencies.

This article comes from China Li-ion Battery E-News 1607, CCM



About CCM:

CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets. Founded in 2001, CCM offers a range of data and content solutions, from price and trade data to industry newsletters and customized market research reports. Our clients include Monsanto, DuPont, Shell, Bayer, and Syngenta. CCM is a brand of Kcomber Inc.


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Tag: Li-ion battery


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