Yulong Co., Ltd. Acquired Vanadium Mine And Deployed Vanadium Battery Energy Storage

Recently, Yulong Co., Ltd. (601028.SH) announced that the company intends to acquire 67% of the shares of Shaanxi Shanjin Mining in cash, in order to obtain the mining rights of the company’s core asset, Loufanggou Vanadium Mine Project in Shangnan County, Shaanxi Province.
According to reports, the preliminary valuation of Shaanxi Shanjin Mining is no more than 195 million yuan. The vanadium mine adopts underground mining method, with an annual production scale of 660,000 tons and a mining area of 2.513 square kilometers, the mining license has expired, and the mining rights renewal procedures are in progress.
Yulong Co., Ltd. stated that this transaction is conducive to enhancing the company’s ability to extend the integration of the industry chain in the field of new energy and achieve a breakthrough in the domestic mining layout. It is a positive measure to promote the company’s new energy and new materials related minerals.
According to public information, Yulong shares can be traced back to Wuxi County High Frequency Welded Pipe Factory, which was established in 1980 and landed on the Shanghai Stock Exchange in 2011. Mainly engaged in the trade of minerals, non-ferrous metals, coal, chemicals and other bulk commodities.
In the field of new energy, Yulong Co., Ltd. started its layout as early as May 2018. It invested 790 million shares in Yu Hanyao, the main products are ternary material series products and their modified products, lithium cobalt oxide series products, but the profit effect is not satisfactory. Yu Hanyao has a net loss of 22.51 million yuan and 33.51 million yuan in 2018 and 2019 respectively.
For the most popular battery-grade lithium carbonate, Yulong also has a relevant layout. In May of this year, a wholly-owned subsidiary of Yulong Co., Ltd. jointly established a lithium ore project team with Batuo Gold to conduct risk exploration of lithium ore resources in the area where the Batuo mining rights are subject. Batuo Gold has discovered lithium ore in some sections.
The acquisition of vanadium ore marks Yulong’s entry into the field of vanadium battery energy storage. Compared with lithium batteries, vanadium batteries have the advantages of high safety, long life, and convenient capacity increase. Besides, China is rich in vanadium resources, accounting for 39% of the world’s total reserves.
It is worth noting that at present, vanadium batteries are still in the development stage, and there are still some technical barriers to be overcome, including the need to import ion exchange membranes and the narrow operating temperature range of batteries.