Chinese lithium manufacturer Youngy, listed on the Shenzhen stock exchange, has unveiled plans to expand capacity at its Jiajika spodumene mine in Sichuan Province’s Ganzi prefecture, Kallanish reports. This move aligns with the company’s strategy to strengthen its position in the lithium supply chain.
Expansion Details
- Youngy’s wholly-owned subsidiary, Rongda Lithium (Ganzi), signed a two-year raw ore transportation cooperation agreement with the Kangding City local government.
- The agreement includes constructing an additional 350,000 tonnes per year (t/y) of mineral processing capacity at the mine.
- Raw ore from the mine can be outsourced for beneficiation, but annual shipments will be capped as per the agreement.
Youngy has indicated that if no disputes arise during the initial term, the agreement could be extended further.
Current and Projected Capacities
- Existing capacities:
- Ore mining: 1.05 million t/y.
- Ore processing and beneficiation: 450,000 t/y.
- Lithium concentrate output: 70,000-80,000 t/y when fully utilized.
- Post-expansion: The new project will bring total mineral processing capacity to 800,000 t/y, enhancing production efficiency and throughput.
Resource and Economic Implications
- The Jiajika134 mine, under Youngy’s exclusive mining rights, has an average lithium ore grade of 1.42%, equating to 1 million tonnes of lithium carbonate reserves.
- Youngy sees the expansion as a critical step to:
- Boost mine output and economic efficiency.
- Align production capacity with resource availability.
- Strengthen upstream and downstream synergies in the lithium industry.
Strategic Outlook
This expansion positions Youngy to capitalize on growing global lithium demand, driven by the electric vehicle and renewable energy sectors. With improved capacity and resource utilization, the company is poised to enhance profitability and maintain a competitive edge in the rapidly evolving lithium market.
