Highlights
- China Minmetals Corporation acquired a controlling 53% stake in Qinghai Salt Lake Industry Co., Ltd. (QSLI).
- The acquisition created a 10 billion yuan joint venture.
- The acquisition targets critical minerals like lithium and potassium.
- Lithium and potassium are essential for battery production and agricultural fertilizers.
- The strategic move aims to enhance China’s resource security and industrial development.
- The acquisition positions China in the global battery materials and fertilizer markets.
China Minmetals Corporation (opens in a new tab) has strategically acquired a controlling stake in Qinghai Salt Lake Industry Co., Ltd (opens in a new tab). (QSLI), a leading Chinese producer of potash fertilizers and lithium carbonate. This move is part of a broader initiative to establish China Salt Lake Industry Group, a joint venture with a registered capital of 10 billion yuan ($1.4 billion), where China Minmetals holds a 53% stake, and Qinghai’s state-owned entities hold the remaining 47% .
Reuters reported on this transaction earlier this month. QSLI, based in Golmud, Qinghai Province, operates the Qarhan Salt Lake—the largest salt lake in China—and is a significant source of potassium and lithium resources. The company’s primary products include potassium chloride and lithium carbonate, essential for agricultural fertilizers and lithium-ion batteries, respectively, according to multiple reports (opens in a new tab).
China Minmetals’ acquisition aims to secure a stable supply of critical minerals like lithium and potassium, which are vital for China’s energy transition and food security.
By integrating QSLI’s resources and production capabilities, China Minmetals seeks to enhance its position in the global market for battery materials and fertilizers, aligning with national strategies for resource security and industrial development
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