Tianqi Lithium Corporation (9696.HK) Bundle
From its founding in 1992 in Chengdu to dual listings on the Shenzhen (2010) and Hong Kong (2018) exchanges, Tianqi Lithium has grown into a vertically integrated lithium powerhouse-owning stakes in Australia's Greenbushes and the Kwinana refinery, holding a 23.77% interest in Chilean SQM purchased for $4.1 billion in 2018, and advancing projects such as the Cuola spodumene mine in Sichuan; after a 2020 restructuring prompted by a market downturn, the company reported a striking turnaround with a Q1 2025 net income attributable to shareholders of RMB 104.27 million versus a loss of RMB 3.90 billion a year earlier, earned through sales of battery-grade lithium carbonate, lithium hydroxide and related products across Australia, Chile and China, guided by a mission of "Changing the World with Lithium," a stated commitment to ESG reflected by inclusion in the S&P Global Sustainability Yearbook (China Edition) 2025, and a business model that mixes founder-led ownership, institutional investors, global resource control and technology-driven cost management-read on for a detailed look at Tianqi's history, ownership, operations, revenue streams and market positioning
Tianqi Lithium Corporation (9696.HK): Intro
Founded in 1992 in Chengdu, Sichuan Province, Tianqi Lithium Corporation (9696.HK) began as a mining and manufacturing company focused on lithium extraction and processing. Over three decades it expanded from domestic mine operations to global downstream battery-materials and strategic investments, positioning itself as a vertically integrated lithium player.- Founded: 1992 (Chengdu, Sichuan, China)
- Primary activities: lithium mining, spodumene concentrate production, lithium chemicals (carbonate, hydroxide), battery materials
- Major international asset: 23.77% stake in SQM acquired in 2018 for $4.1 billion
- Listings: Shenzhen Stock Exchange (2010), Hong Kong Stock Exchange (2018)
- Sustainability recognition: Included in S&P Global Sustainability Yearbook (China Edition) 2025
- 1992-2009: Build-out of domestic mining and processing capacity in Sichuan and other provinces; development of spodumene beneficiation and chemical conversion capabilities.
- 2010: Listed on Shenzhen Stock Exchange, improving access to domestic capital markets.
- 2018: Dual expansion-listed on Hong Kong Stock Exchange and completed $4.1 billion acquisition for a 23.77% stake in Sociedad Química y Minera de Chile S.A. (SQM), strengthening exposure to brine-sourced lithium in Chile.
- 2020: Faced liquidity and operational pressures amid a lithium market downturn; implemented restructuring plans to deleverage and stabilize operations.
- 2024-2025: Recovery and profitability return-reported net income attributable to shareholders of RMB 104.27 million in Q1 2025, versus a loss of RMB 3.90 billion in Q1 2024.
- Upstream mining: Spodumene mining and beneficiation in China (hard-rock) and minority interest in brine-focused SQM (Chile).
- Midstream processing: Conversion of spodumene to lithium carbonate and lithium hydroxide; production of battery-grade materials.
- Downstream sales: Supplying lithium compounds to battery manufacturers, chemical companies and EV supply chains globally.
- Strategic investments: Equity stakes and JV arrangements to secure feedstock and expand geographic footprint.
- Product sales: Revenue from sale of spodumene concentrates, lithium carbonate, lithium hydroxide and other lithium derivatives.
- Contracting and long-term supply agreements: Secured offtake contracts with battery makers, stabilizing revenue streams.
- Asset appreciation and investments: Returns and strategic value from minority stake in SQM and other holdings.
- Processing margins: Value-add from converting raw spodumene into higher-value battery-grade chemicals.
| Item | Figure | Notes / Period |
|---|---|---|
| SQM stake acquisition | $4.1 billion | 2018 - 23.77% stake in SQM |
| Listings | Shenzhen (2010); Hong Kong (2018) | Domestic and international equity access |
| Q1 Net income attributable to shareholders | RMB 104.27 million | Q1 2025 |
| Q1 Prior-year net result | Loss RMB 3.90 billion | Q1 2024 |
| Sustainability recognition | S&P Global Sustainability Yearbook (China Edition) 2025 | ESG inclusion |
- Major shareholders: mixture of founding management, institutional investors and strategic partners; notable 23.77% economic exposure via SQM stake (2018 acquisition).
- Governance focus: post-2020 restructuring emphasized deleveraging, operational efficiency and strengthened board oversight to navigate commodity cyclicality.
| Metric | Typical measure |
|---|---|
| Production types | Spodumene concentrate, lithium carbonate, lithium hydroxide |
| Revenue drivers | Sales volumes, realised lithium prices, product mix (carbonate vs hydroxide) |
| Risk factors | Commodity price volatility, operational disruptions, regulatory/geopolitical risks in host jurisdictions |
- Focus on vertical integration to capture processing margins and stabilize earnings through product diversification.
- Strengthening balance sheet and cashflow after 2020 restructuring; achieved profitability recovery by 2025.
- Commitment to ESG practices reflected by Yearbook inclusion and sustainability reporting improvements.
Tianqi Lithium Corporation (9696.HK): History
Tianqi Lithium Corporation (9696.HK) is a vertically integrated lithium chemicals and materials company founded in Sichuan, China. It has grown from regional spodumene mining and processing to become a global lithium player through strategic asset acquisitions, international investments and expansion into battery-grade chemicals.
- Public listings: Shenzhen Stock Exchange and Hong Kong Stock Exchange (dual-listed).
- Founder and largest shareholder: Jiang Weiping - founder and honorary chairman, holding a controlling or significant stake that influences strategic direction.
- Major institutional and public shareholders: a mix of domestic and international funds and retail investors providing capital and governance oversight.
- Key international investment: 2018 acquisition of a 23.77% stake in SQM (Sociedad Química y Minera de Chile S.A.) for approximately $4.1 billion to secure long-term lithium supply and global footprint.
- Asset ownership: majority ownership in the Greenbushes hard-rock lithium operation via Tianqi's Australian subsidiary (approximately 51% stake in Talison/Greenbushes joint venture), a critical source of high-grade spodumene ore.
| Item | Detail / Number |
|---|---|
| Stock codes | Shenzhen (A-share), Hong Kong: 9696.HK |
| Founder / Largest shareholder | Jiang Weiping - founder & honorary chairman (significant controlling stake) |
| SQM stake (2018) | 23.77% - acquisition value ≈ $4.1 billion |
| Greenbushes stake | ~51% (via Tianqi Australia / Talison participation) |
| Business segments | Spodumene mining, lithium chemical production (carbonate, hydroxide), battery materials |
Ownership combines founder-led control with diversified external investors, balancing strategic decision-making and capital backing. For further reading: Tianqi Lithium Corporation: History, Ownership, Mission, How It Works & Makes Money
Tianqi Lithium Corporation (9696.HK): Ownership Structure
Tianqi Lithium Corporation (9696.HK) - founded in 1995 and listed on the Hong Kong Stock Exchange - positions itself as a global lithium-platform company focused on enabling the energy transition. Its stated mission, 'Changing the World with Lithium,' drives strategy, capital allocation and R&D priorities, while the firm emphasizes that economic benefits must never override environmental protection, safety and social well‑being. Tianqi integrates ESG across operations and was included in the S&P Global Sustainability Yearbook (China Edition) 2025. Mission Statement, Vision, & Core Values (2026) of Tianqi Lithium Corporation.- Mission: Changing the World with Lithium - accelerate electrification and storage through lithium products and technologies.
- Values: safety first, environmental stewardship, people-centric governance, openness and international collaboration.
- ESG focus: sustainable development embedded into projects, supply chain, and governance; recognized in S&P Global Sustainability Yearbook (China Edition) 2025.
| Holder | Approx. stake | Role / Notes |
|---|---|---|
| Tianqi Holdings Group (founder-related) | ~40-46% | Largest controlling shareholder; strategic and board influence |
| Institutional investors (global funds, banks) | ~20-30% | Passive and active institutional holders holding ADRs/H-shares |
| Public shareholders / retail | ~15-25% | HKEX free float and retail investors |
| Joint-venture / strategic partners (minor stakes) | ~0-5% | Joint ventures, local partners and specific project investors |
- Control concentration allows long-term project investments (mining, refining, chemicals) while board-level ESG mandates restrict projects that compromise safety/environment.
- Institutional holders exert governance pressure on transparency, capital allocation and deleveraging after heavy capex cycles.
- Strategic JV partners provide off‑take, financing or technology collaboration to optimize global resource allocation and comply with international standards.
| Metric | Latest reported / approximate |
|---|---|
| Annual revenue | RMB 30-45 billion (most recent fiscal year range) |
| Net income (loss) | Varies by year: structural investment years can show lower or negative net profit due to asset write‑downs |
| Total assets | RMB 80-120 billion (approx.) |
| Employees | ~6,000-8,000 globally |
| Major upstream asset (Greenbushes via Talison/ownership) | Effective material stake in world-class spodumene resource (strategic source for battery-grade lithium) |
- Mining: spodumene concentrate production from owned/joint assets - revenue from concentrate sales and long-term offtake contracts.
- Refining & chemicals: conversion of spodumene to lithium carbonate and lithium hydroxide - higher‑margin downstream products for EV batteries.
- Trading and services: lithium product trading, technical services, and project development fees in global markets.
- Strategic partnerships and JVs: monetize equity in large projects and secure offtake/processing synergy to stabilize cash flow.
Tianqi Lithium Corporation (9696.HK): Mission and Values
Tianqi Lithium Corporation (9696.HK) pursues a vertically integrated model spanning upstream resource extraction to downstream chemical processing and battery-grade product supply. The company focuses on securing feedstock, controlling midstream conversion to lithium hydroxide, and supplying battery manufacturers to capture value across the lithium value chain.- Vertical integration: from spodumene mining to lithium hydroxide production and chemical sales.
- Asset diversification: hard-rock (Australia) and brine (Chile) exposure to balance resource risks.
- Technology and sustainability: investment in processing efficiency, water conservation, and waste/land management.
- Mining operations: Tianqi holds a majority interest (c.51% stake via subsidiaries) in the Greenbushes spodumene operations in Western Australia - one of the world's highest-grade, largest spodumene mines that supplies a substantial share of global high-purity spodumene concentrate.
- Refining and conversion: Tianqi is a major investor in the Kwinana lithium refinery (Western Australia), a spodumene-to-hydroxide facility developed to produce battery-grade lithium hydroxide on an industrial scale (project capacity in the order of tens of thousands of tonnes per annum of LiOH·H2O at full ramp-up).
- Brine operations exposure: Tianqi holds a significant equity position in SQM (Sociedad Química y Minera de Chile S.A.), providing access to brine-sourced lithium from the Salar de Atacama and complementing hard-rock supply with brine-derived lithium chemicals.
- R&D and process optimization: ongoing investments in leaching, tailings handling, and hydroxide conversion technologies to lower unit costs and environmental footprint.
- Raw material sales: selling spodumene concentrate from Greenbushes to traders and converters worldwide.
- Value-added chemicals: producing and selling lithium hydroxide and related compounds used by EV and battery manufacturers, which command higher margins than raw concentrate.
- Equity income and dividends: returns from strategic shareholdings (notably in SQM) that provide exposure to brine-derived lithium pricing and production.
- Long-term supply contracts and tolling: securing offtake agreements with battery and automaker customers for stable revenue streams and price visibility.
| Item | Representative Figure / Note |
|---|---|
| Greenbushes ownership | c.51% via Tianqi subsidiaries |
| Greenbushes share of global spodumene | Provides a material share of global high-grade spodumene (estimated >30-40% of seaborne supply in recent years) |
| Kwinana refinery capacity | Planned/commissioned capacity in the order of tens of thousands tpa of lithium hydroxide (LiOH·H2O) once fully ramped |
| SQM equity stake | Significant minority stake (acquired ~23.77% in prior transactions), providing brine exposure |
| Global lithium demand growth | Demand CAGR for battery-grade lithium compounds ~20%+ in early 2020s driven by EV adoption |
- Water and waste management: initiatives at both hard-rock and brine operations to reduce freshwater intake, recycle process water, and manage tailings responsibly.
- Land rehabilitation: progressive rehabilitation programs at mine sites to restore disturbed land post-mining.
- Regulatory alignment: investment in emissions control, chemical handling, and reporting to meet tightening environmental standards in Australia, Chile and global customer expectations.
- Operational efficiency: scale benefits from integrated supply chain reduce per-unit cash costs versus pure-play upstream producers.
Tianqi Lithium Corporation (9696.HK): How It Works
Tianqi Lithium Corporation (9696.HK) operates across the lithium value chain - from spodumene mining and concentration to chemical conversion and sale of battery-grade lithium compounds - and augments its cash flows through strategic equity stakes. The company's physical assets, downstream processing plants, and financial investments combine to supply battery materials to EV and energy-storage manufacturers globally.- Core activities: extraction of spodumene (hard-rock) concentrates, chemical processing to lithium carbonate and lithium hydroxide, production of lithium chloride and lithium metal, and equity investments in global lithium producers.
- Geographic footprint: major operations/positions in Australia (Greenbushes via Talison), Chile (strategic SQM stake), and China (downstream chemical plants and sales/market access).
- Key strategic investment: ~23.77% equity stake in Sociedad Química y Minera de Chile (SQM), providing dividend income and potential capital appreciation.
- Mining and concentrate sales: sale of spodumene concentrate from the Greenbushes operation (Tianqi historically holds a 51% interest in Talison Lithium/Greenbushes). Greenbushes is one of the world's largest hard-rock sources and has been cited as supplying roughly 40% of global spodumene production in recent market discussions.
- Upstream chemical conversion and product sales: converting spodumene into battery-grade lithium carbonate and lithium hydroxide monohydrate for EV battery cathode makers and cell manufacturers.
- Specialty and ancillary products: lithium chloride anhydrous for chemical feedstock, lithium metal for niche industrial uses, and tailored high-purity products for specific battery chemistries.
- Investment income: dividends and realized/unrealized gains from the SQM stake and other strategic holdings.
- Services and technology: tolling/processing for third parties, technology licensing, and process optimization that lower unit costs and create service revenue streams.
| Product | Main Use | Typical Buyer | Price dynamics (recent years) |
|---|---|---|---|
| Battery-grade lithium carbonate | Cathode precursor, LFP and some NMC supply chains | Battery makers, cathode producers | Highly cyclical; spot peaked in 2022 (tens of thousands USD/tonne) and softened thereafter - prices vary widely by quality and contract. |
| Lithium hydroxide monohydrate | NMC/NCA cathodes (high-nickel chemistries) | Automotive battery manufacturers, cathode producers | Strong demand from high-nickel cathodes; price tracked carbonate but with different regional spreads. |
| Spodumene concentrate | Feedstock for conversion to carbonate/hydroxide | Converters, traders, in-house processing | Price volatile; tied to Chinese conversion capacity and seasonal/transport factors. |
| Lithium chloride / lithium metal | Industrial chemicals, specialty batteries | Chemical producers, specialty battery firms | Smaller volumes, price premium for high-purity grades. |
- Vertical integration: owning feedstock (Greenbushes stake) and downstream conversion reduces margin leakage and secures raw material for internal processing.
- Portfolio diversification: revenue across mining, chemicals, and financial investments (notably SQM) smooths cash flow relative to spot-cycle swings.
- Scale and technology: larger-scale converters and process improvements (e.g., reagent recovery, water/energy efficiency) lower unit cost of production and support margins during price downturns.
- Commercial contracts: long-term offtakes, tolling agreements, and supply agreements with battery and cathode makers help lock in volumes and pricing stability.
- Capital structure and asset monetization: strategic stake sales, joint ventures, and asset-level financing are used to manage balance-sheet exposure and fund capacity expansion.
| Item | Figure / Note |
|---|---|
| Stock exchange ticker | 9696.HK (Hong Kong) |
| SQM stake | Approximately 23.77% equity interest (acquired 2018; source: company disclosures) |
| Greenbushes interest | Majority position via Talison Lithium (historically ~51% reported) |
| Global spodumene share | Greenbushes often cited as supplying ~40% of global hard-rock spodumene output (market commentary) |
| Product mix | Battery-grade lithium carbonate, lithium hydroxide monohydrate, lithium chloride anhydrous, lithium metal |
- Spodumene concentrate sold on contract or spot to converters - yields upfront revenue and supports internal conversion throughput.
- Converted carbonate/hydroxide sold under multi-year supply contracts to cathode/battery manufacturers - higher-margin, value-added product revenue.
- Dividend receipts and possible capital gains from SQM stake - non-operational but material to consolidated cash flows depending on SQM distributions and market valuation.
- Sustainability investments (water management, energy efficiency, reclamation) reduce regulatory and social risk and can improve capital access and pricing with ESG-conscious customers.
- Continuous process optimization and procurement scale aim to reduce operating cost per tonne, helping maintain profitability across price cycles.
Tianqi Lithium Corporation (9696.HK): How It Makes Money
Tianqi Lithium Corporation (9696.HK) generates revenue primarily by producing and selling lithium raw materials and downstream lithium chemicals used in electric vehicle (EV) batteries and energy storage systems. The company's income streams are anchored in spodumene concentrate mining, lithium carbonate and hydroxide processing, equity stakes in strategic assets, and offtake and tolling agreements with battery makers and chemical processors.- Spodumene concentrate sales from owned and joint-venture mines (bulk shipments to processors and converters).
- Lithium chemical sales (carbonate, hydroxide) to battery manufacturers and chemical intermediaries.
- Strategic equity holdings and joint ventures providing dividend and capital gains potential.
- Tolling and offtake contracts that lock in volumes and margins with large customers.
- Value-added services and technology licensing in processing and refining flowsheets.
| Metric (approx., late 2025) | Value | Notes |
|---|---|---|
| Estimated global market share (lithium raw materials) | ~10-12% | Ranked among the top 3-5 global suppliers by spodumene volume |
| Annual spodumene production capacity | ~1.0 million tpa concentrate (nameplate, company + JV) | Includes ramping assets and contracted volumes |
| Annual lithium chemical production (LCE equivalent) | ~120-160 kt LCE | Combined carbonate & hydroxide output from integrated plants |
| Reported revenue (FY 2024, approximate) | HK$15-20 billion | Subject to commodity pricing volatility |
| Capital expenditure plan (2025-2027) | ~US$1.2-1.8 billion | Allocated to capacity expansion, Cuola development, and processing upgrades |
| Cuola spodumene mine expected output (design) | ~200 ktpa concentrate | Project in Sichuan aimed at increasing feed for downstream plants |
- Strategic positioning: Tianqi leverages integrated upstream-to-midstream operations to capture margin across the value chain and secure long-term offtake with battery and auto OEMs.
- Future growth drivers: global EV adoption and grid storage demand are expected to lift lithium prices and utilization-Tianqi's capacity expansions target these markets.
- Sustainability & ESG: investments in water recycling, tailings management, and decarbonization of chemical plants aim to improve permitting outcomes and investor appeal.
- Risks and headwinds: commodity price volatility, regulatory shifts (export controls, environmental approvals), and competition from producers in Australia, North America and South America require active hedging and flexibility.
- Technology & efficiency: ongoing capex for processing upgrades and automation is intended to lower unit costs and improve recoveries, supporting margins when prices normalize.
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