Information from the Stock Exchange of Hong Kong shows that China-based Tianqi Lithium has applied for an IPO in Hong Kong.
The company, which is already listed in the Shenzhen Stock Exchange in China, is working with sponsors Morgan Stanley, China International Capital Corporation (CICC), and CMB International Capital Corporation (CMBI) to go public in Hong Kong later this year.
Tianqi's IPO is expected to be the largest one in 2022 in Hong Kong.
The company previously put a stop to its IPO application in Hong Kong in 2019 amid sluggish lithium prices. Following its acquisition of Chile-based chemical company SQM, the large Chinese lithium material supplier said the IPO funds will be used to clear SQM's debts of US$1.13 billion, to invest in building a new plant in Anju, Sichuan province, and to optimize operations.
According to a report by energy consultancy Wood Mackenzie, Tianqi was the fourth-largest lithium compound material producer in the world in 2021 with 7% market share. It is also the world's second-largest supplier of lithium carbonate for EV battery use.
Tianqi's total annual production capacity of lithium is expected to reach 1.62 million metric tons this year and reach 2.1 million metric tons by 2025 with multiple expansion projects scheduled to begin in the following years.
As for production of lithium salt and other mid-stream products, the company has a combined annual production of 110,000 metric tons so far with production in China and Australia.
Thanks to surging demand for lithium materials for EV batteries in recent years, Tianqi is also expanding to produce new materials for EV batteries in collaboration with China Aviation Lithium Battery (Calb Tech).