St George Mining rakes in $2mn strategic investment by world-leading lithium-ion battery player
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Hongkong Xinwei Electronic Co, a wholly owned subsidiary of China based Sunwoda Electronic Co has agreed to invest in St George by way of a placement of new shares, at a price of 8.6 cents per share, a significant premium to the market.
Sunwoda is a high-tech enterprise specialising in the design, production and sale of lithium-ion battery cells and modules for use in a range of applications including mobile phones and laptops, electric vehicles, and energy storage devices.
Based on installed capacity of power batteries in 2022, Sunwoda ranks fifth in China (January to November 2022) and ninth in the world (January to October 2022).
It has seven manufacturing bases in China and abroad, as well as technical centres in China, the US, Germany, and Israel with more than 41,850 employees worldwide and a large global customer base.
The strategic investment underpins a Memorandum of Understanding (MoU) entered by St George (ASX:SGQ) and Xinwei to consider partnering on lithium business opportunities.
It also complements similar agreements the company has struck with global battery giant SVOLT Energy Technology and battery investor Shanghai Jayson New Energy Materials Co over the past month.
SGQ executive chairman John Prineas says this move highlights St George’s strong success in developing key industry relationships with some of the largest and most important global players in lithium-ion batteries.
“Our strategic relationship with Sunwoda will strengthen our ability to both advance Mt Alexander and to potentially generate and partner on additional lithium projects in Western Australia, which is the world’s best hard-rock lithium address,” he adds.
The MoU has an initial term of two years, and until a formal agreement is signed, the MoU is non-binding and non-exclusive.
This article was developed in collaboration with St George Mining, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.