Chinese companies join hands to support lithium exploration in Zimbabwe

A worker operates on a production line at a lithium battery factory in Tangshan, north China's Hebei Province, Nov. 29, 2020. (Xinhua/Yang Shiyao)

China's Sinomine Resource Group Co., Ltd. (Sinomine, 002738.SZ) and Shenzhen Chengxin Lithium Group Co., Ltd. (Chengxin Lithium, 002240.SZ) agreed on Monday that the two parties will set up a joint venture in Zimbabwe to enhance cooperation on lithium mine projects, according to a Sinomine announcement, reported Shanghai Securities News.

The cooperation agreement was signed between Sinomine International Exploration (Hong Kong) Co., Ltd., a subsidiary of Sinomine, and Chengyi Lithium International Limited, a sub-subsidiary of Chengxin Lithium, with the two parties each holds 50 percent of the joint venture.

Registered in Harare, Zimbabwe's capital with 5 million U.S. dollars capital, the joint venture is expected to operate in the exploration of lithium and platinum mines in the country.

The two companies both agreed that the cooperation is in line with their main business development paths, with the potential to strengthen each others' competitiveness in the lithium-based new energy field and bring enhancing profitability to both parties.