SNEP lithium salts plant starts production to meet China’s EV battery demand

Sichuan New Energy Power

SNEP lithium salts plant has begun production in Sichuan to supply battery makers. The SNEP lithium salts plant adds 30,000 t/yr of battery-grade capacity. As a result, the SNEP lithium salts plant strengthens China’s lithium supply chain.

Capacity, products, and partners

SNEP commissioned its Mianzhu facility with 30,000 t/yr nameplate capacity. The plant will produce 15,000 t/yr lithium carbonate and 15,000 t/yr lithium hydroxide. The project cost Yn1.49bn and moved from build to product launch in 16 months. Eve Energy and Svolt each hold 24.5pc, aligning offtake with leading cell makers. SNEP retains a 51pc operating stake to anchor strategy and quality.

Upstream integration and market context

SNEP advances vertical integration through the Lijiagou spodumene project. That mine targets 180,000 t/yr of concentrate once ramped. Meanwhile, SNEP’s Dingsheng unit adds 15,000 t/yr salts capacity in Sichuan. China’s EV and storage sectors keep expanding, supporting lithium demand. However, price volatility persists as new supply enters the market.

Rising domestic capacity aids cost control and security of supply. Battery-grade hydroxide supports high-nickel chemistries for long-range EVs. Carbonate supports LFP cells for mass-market cars and stationary storage. Therefore, diversified output improves resilience across chemistries. Rapid commissioning also signals improving Chinese processing know-how.

The Metalnomist Commentary

This commissioning tightens links between upstream spodumene and downstream cathode supply. Watch ramp efficiency, product qualifications, and offtake pacing into 2025. If Lijiagou stabilizes, SNEP could hedge input risk and sustain margins across cycles.