BEIJING, June 25 (Reuters) - China’s Ganfeng Lithium , one of the world’s biggest producers of the material, said late on Wednesday it would buy almost 7% in Chinese cobalt firm Ganzhou Tengyuan Cobalt New Material for 300.12 million yuan ($42 million).
The move marks Ganfeng’s first investment in production of cobalt, which – like lithium – is a key ingredient in rechargeable batteries for the electric vehicle industry, now booming around the world.
Ganfeng said in a filing to the Hong Kong stock exchange that it had succeeded in a bid for around 6.5 million shares in Tengyuan held by Xinyu High-tech Investment Co on the Jiangxi Assets and Equity Exchange.
Upon completion of the transaction, Ganfeng will hold a 6.9% stake in Tengyuan. Both companies are based in China’s southern province of Jiangxi.
Tengyuan didn’t immediately respond to request for comment on Thursday, a national holiday in China.
On its website, Tengyuan said it produces and trades cobalt products, has an annual production capacity of 6,500 tonnes of cobalt products and can also make 3,000 tonnes of copper cathodes per year.
$1 = 7.0770 yuan Reporting by Tom Daly; Editing by Kenneth Maxwell