Jiangsu Lopal Tech (SHA:603906, HKG:2465) agreed to acquire a lithium exploration lease and related assets in Australia for AU$14.9 million, according to a Hong Kong bourse filing Tuesday.
Shares of the automotive specialty chemicals seller gained over 1% in morning trade Wednesday.
The firm is acquiring the lease from Global Lithium Resources and MB Lithium, and said the Marble Bar lithium mining project will subsequently require investments of over $200 million over a two- to three-year period to make it functional.
Lopal Tech said the mine will help strengthen its strategic footprint in upstream resources, particularly in lithium iron phosphate cathode materials.
Meanwhile, in a separate announcement, the firm entered into a subscription, offtake and prepayment termsheet with Global Lithium Resources and GLR Australia to support its raw material requirements.
The agreement provides for the subscription of 13.8 million Global Lithium Resources shares representing 5% of the business at AU$0.52875 apiece; the supply of 40% of the actual annual production of spodumene concentrate from the Manna lithium project; and the prepayment of $75 million by Lopal Tech to secure the supply.
The firm will initially prepay $7.5 million within 30 days and settle the remaining $67.5 million in four equal installments.
Lopal Tech said the payment schedule may exert "certain pressure" on its periodic fund arrangements.
Global Lithium Resources is due to make a final investment decision in the Manna lithium project by the end of 2026, and expects to begin shipments in June 2028.