(Yicai Global) Sept. 5 -- Do-fluoride Chemicals plans to purchase a 70 percent stake in Luoyang Lion Fluorite Mining in order to ensure the supply of raw materials for its lithium power batteries.

The target company is a leading fluorite mining and processing firm in China, with six mines in Luoyang and Chongqing and three ore handling facilities, Henan province-based Do-fluoride said in a statement yesterday. It has about 3 million tons of fluorite reserves and the capacity to process 60,000 tons of powder a year.

Fluorite is a key material in the production of lithium hexafluorophosphate, which is one of the core ingredients in lithium batteries. Do-fluoride buys about 500,000 tons of fluorite powder each year and believes that its investment in Lion will guarantee it has sufficient supply.

The buyer was China's first inorganic fluorine firm to go public in China, and as of late has been developing electrolytes, cathode materials and separators for lithium cells, as well as the batteries themselves and even electric vehicles.

Editor: James Boynton