Tianqi Lithium Corporation (HKEX: 09696) has announced a strategic move by its wholly-owned subsidiary, Tianqi Lithium (Shehong) Co., Ltd. (Shehong Tianqi), to invest in Sunwoda Power Technology Co., Ltd. (Sunwoda Power).
The subsidiary plans to sign a "Sunwoda Power Technology Co., Ltd. Capital Increase Agreement" with the target company, its largest shareholder Sunwoda Huizhou New Energy Co., Ltd., and Sunwoda Power's actual controllers, Wang Mingwang and Wang Wei. Shehong Tianqi will use RMB 150 million of its own funds to subscribe to 79,218,106 new shares in Sunwoda Power.
Other investors in this capital increase round include Sungrow Power Supply Co., Ltd., which plans to subscribe to 345,919,064 new shares in Sunwoda Power.
Sunwoda Power is described as a globally leading comprehensive new energy technology company. It integrates the research, production, and sales of battery cells, modules, battery management systems (BMS), and battery packs (PACK), focusing on providing scenario-specific power batteries and energy storage solutions.
The company stated that this transaction aligns with its vertical integration development strategy and the trend of upstream-downstream industry chain linkage. It will deepen cooperation with the downstream industry chain, opening new channels and avenues for business expansion.
This investment allows Tianqi Lithium to explore opportunities for circular development within the industry chain while pursuing its vertical integration strategy. From a long-term strategic perspective, the company expects this transaction to have a positive impact on its future business development.
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