Chinese electric-car maker BYD Company Ltd. is in talks to acquire six lithium mines in Africa to secure raw material supplies for batteries, online news outlet The Paper reported May 31, citing unnamed sources.

The six mines contain more than 25 million tonnes of ore grading 2.5% lithium oxide, equivalent to 1 million tonnes of lithium carbonate, a source told the outlet, which is owned by state-run Shanghai United Media Group. With such a volume of ore, BYD could lock in lithium needs for more than a decade, the report said.

The mines are expected to produce lithium carbonate at a cost of less than 200,000 Chinese yuan per tonne, far below the domestic price of 500,000 yuan per tonne in mid-March, the report said.

Some of the six mines will start shipments in June, and BYD plans to use the lithium in its batteries starting the third quarter.

BYD aims to sell 1.5 million electric vehicles in 2022.

As of May 30, US$1 was equivalent to 6.66 Chinese yuan.

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