China Minmetals Corp (CHMIN) will control a province-backed lithium company to accelerate the development of a world-class industry. The joint venture, China Salt Lake Group, will take over Qinghai Salt Lake Industry Co. The group’s registered capital will be 10 billion yuan. The restructuring indicates a push for central control over lithium production in Northwestern China’s salt lakes.

The Minmetals takeover aims to speed up the construction of a world-class salt lake industry base. Currently under provincial control, Qinghai Salt Lake’s shares increased by over 8% following the news. Despite a supply glut causing price crashes globally, lithium production is essential for the future of electric vehicles and energy storage.

Besides Minmetals’ majority stake, the remaining part of China Salt Lake Group will be owned by two Qinghai government entities.

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