Gotion High Tech signs lithium plant deal in Argentina
Chinese battery cell manufacturer and Volkswagen partner Gotion High-Tech has signed an agreement to build a lithium carbonate plant in Argentina. In future, the material will be processed into battery cells in Argentina, which can then also be used in electric vehicles manufactured in four continents.
The agreement with Argentina’s state-owned mining company Jujuy Energía y Minería Sociedad del Estado (JEMSE) provides for the establishment of a joint venture, provisionally named Gotion Jujuy Mining, to build and operate a battery-grade lithium carbonate refinery in the Perico free zone. trade zone in Jujuy Province. The original plan is an annual capacity of 10,000 tonnes of lithium carbonate, with the possibility of expanding by a further 50,000 tonnes based on market demand.
Argentina is said to have one of the largest lithium deposits in the world in a region known as the Lithium Triangle, which includes Argentina, Bolivia and Chile. According to International Lithium corp. Currently, over 30 percent of global lithium trade comes from deposits in the Lithium Triangle.
In addition to the lithium carbonate refinery, Gotion and JEMSE have decided to collaborate in other areas of the lithium supply chain. This involves the downstream business: In the province of Jujuy, the lithium carbonate is to be processed into cathode materials that Gotion will install in battery cells in Argentina. Gotion says these should then be used in the German, Indian, American, Spanish and Vietnamese markets.
The CN EV Post report has not revealed a timetable for the lithium carbonate refinery or the expansion of cathode and cell production. Gotion is known for being supported by VW and was the fourth largest cell manufacturer from China in May – behind CATL, BYD and CALB, Gotion had a market share of 4.92 percent.
The agreement was to support Gotion’s relentless expansion. Already this year, Gotion achieved an industrialization of the battery cell with LFP chemistry, which offers an energy density of 210 Wh / kg. This recently entered the next phase when Gotion launched the production of LFP cathode materials. Also announced this year, Chinese vehicle maker Geely has signed a contract with Gotion to supply battery cells to around 126,000 Geely light commercial vehicles such as minivans and light trucks between 2022 and 2024. There is no doubt that the Chinese battery maker will need additional resources , as it also opened two new battery factories in China this year.
