On 12 October, Pangang Vanadium & Titanium announced that Pangang Group Vanadium and Titanium Resources Co., Ltd. (hereinafter referred to as the “Company”) recently signed the “Joint Venture Agreement” with Dalian Rongke Energy Storage Group Co., Ltd. (hereinafter referred to as “Dalian Rongke”) in Panzhihua City, Sichuan Province. After friendly negotiation between the two parties, it was decided to jointly invest 31.61 million yuan to establish a joint venture company, of which the company accounted for 51% of the registered capital and Dalian Rongke accounted for 49% of the registered capital. After the completion of this transaction, the joint venture company will become a holding subsidiary of the company and will be included in the scope of the company’s consolidated financial statements.
The main business of the joint venture company covers the research and development, processing and production, marketing and leasing of all-vanadium redox flow battery electrolyte technology.
The joint venture will build an electrolyte production line in Panzhihua City in 2022, with a production capacity of 2,000 cubic meters per year, which is the first phase. From 2023 to 2024, according to the growth of the vanadium battery energy storage market, negotiate to invest in the construction of a vanadium electrolyte with a production capacity of 60,000 cubic meters per year, which is the second phase. Explore and study the vanadium electrolyte pricing mechanism and innovative business models, promote the commercialization of vanadium battery energy storage, and help China achieve the dual-carbon goal and build a new power system with new energy as the main body.
The announcement stated that this foreign investment is in line with the company’s industrial layout plan and development strategy, and is conducive to enhancing the company’s comprehensive competitiveness in the energy storage field. This foreign investment will not have a material adverse impact on the company’s financial status, and there is no situation that damages the interests of the listed company and its shareholders.
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