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China's Youngy to set up lithium plant in Sichuan province

Chinese lithium company Youngy Co. Ltd. signed a framework agreement to build a lithium ore processing plant in Sichuan province, Reuters reported Jan. 2.

The project will be part of the company's investment in an industrial zone in the province worth 1.4 billion Chinese yuan, the report said. No timeline was given for the start of construction.

The deal reportedly requires Youngy to process at least 1.1 million tonnes per annum of spodumene from its Jiajika lithium mine in Sichuan, which restarted in mid-2019 after being shuttered for five years, the report said.

If the company fails to reach the agreed processing volume, it will have to pay additional taxes and fees to the local government to cover the shortfall, according to Reuters.

Youngy also plans to build mine waste processing facilities and a lithium engineering technology research institute in the zone while getting preferential policies for the fundraising from the local government, the report said.

As of Dec. 31, US$1 was equivalent to 6.96 Chinese yuan.