Welbiotech Partners with 3rd Largest Chinese Lithium Carbonate Producer to "Rapidly Respond to Demand"

Global comprehensive distribution company Wellbiotech announced on the 17th that it has signed a Memorandum of Cooperation (MOC) regarding the processing of spodumene (a raw ore containing high-purity lithium) with Shandong Xiboliudium Co., Ltd., a lithium smelting plant in China, and one other company.

Shandong Xiboliudium Co., Ltd. is the largest in Asia in the pre-processing field such as ore dressing and is known as the third largest lithium carbonate producer in China.

Wellbiotech plans to process all spodumene secured in Zimbabwe into lithium carbonate and lithium hydroxide at the Chinese smelting plant and supply it domestically.

Regarding this cooperation, a Wellbiotech official stated, “The added value increases more when lithium is processed and sold rather than sold as raw ore, and we can competitively provide lithium carbonate or lithium hydroxide,” adding, “We aim to respond more quickly to the increasing lithium demand amid supply instability and price volatility, and diversify the supply structure through the entire process from lithium ore procurement to processing to contribute to resolving domestic supply instability.”

He continued, “Internalizing the supply chain of key battery material minerals including lithium is currently a global issue, and domestically, smelting projects are being promoted mainly by major battery companies,” emphasizing, “Considering the domestic situation, we will take swift action to supply lithium.”

Wellbiotech is conducting the smelting process in China because smelting is currently difficult domestically. After the expansion of domestic smelting facilities, the plan is to carry out the smelting process domestically. Recently, POSCO declared this year as the ‘first year of commercial lithium production,’ and many companies are preparing to complete large-scale lithium smelting facilities in Korea within this year.

Earlier on the 11th, Wellbiotech announced that it had obtained permission for lithium ore export for the first time since the Zimbabwean government’s ban on lithium ore exports. It was approved to import 20,000 tons monthly for the next year. This is the first case worldwide since the Zimbabwean government’s 'Basic Mineral Export Control Act' at the end of 2022.

Wellbiotech plans to start with an initial quantity of 2,000 tons and increase the import volume up to 20,000 tons monthly by importing 5,000 tons weekly. Transportation will be handled by Wellbiotech’s logistics subsidiary, Roadstar C&AIR. By managing logistics operations and transportation through its subsidiary, it plans to further enhance synergy.