Shengxin Lithium Energy ends ESOP, secures $500m funding, expands CALB partnership

Shengxin Lithium Energy Group Co., Ltd. has prematurely terminated its 2021 Employee Stock Ownership Plan (ESOP) after the performance target for 2024 operating revenue was not met. The company will proceed with liquidation and asset distribution for the remaining 1,082,840 shares.

In a move to strengthen its capital structure, Shengxin Lithium Energy’s wholly-owned subsidiary, Sichuan Zhiyuan Lithium Industry Co., Ltd., will receive a $500 million capital injection from Xingyin Financial Asset Investment Co., Ltd. This investment will grant Xingyin Investment a 25% stake, with Shengxin Lithium Energy retaining 75% ownership. Concurrently, Shengxin Lithium Energy is partnering with CALB Technology Group Co., Ltd. for a five-year framework agreement from 2026 to 2030, committing to supply 200,000 tons of lithium salt products.

The company also announced the resignation of Ms. Yao Jing as deputy general manager, who will continue to serve as a director. Mr. Fang Yi resigned as a director due to corporate governance adjustments but will remain as executive deputy general manager and has been elected as an employee representative director. Additionally, Shengxin Lithium Energy has provided a guarantee of up to $3.334 billion for its subsidiary, Yajiang Hui Rong Mining Co., Ltd.'s bank loans.