According to reports in foreign media, Neo Lithium, which is listed on the V board in Toronto, Canada, announced the signing of an equity subscription agreement with a subsidiary of CATL.

It is said that CATL will subscribe for over ten million Neo Lithium shares at a price of CAD0.84 per common share. The total investment is about CAD8.58 million, which is about CNY44 million, accounting for 8% of Neo Lithium's total shares. With this deal, CATL will become the third largest shareholder of Neo Lithium and gain a seat on the company's board of directors, and become a member of the company's technical committee.

Public files show that Neo Lithium wholly owns the Tres Quebradas lithium salt lake project in Catamarca, Argentina. The project has 700 tons of LCE and 1.3 million tons of LCE reserves. Its annual production capacity is expected to reach 40,000 tons of battery-grade lithium carbonate.

The deal is subject to the approval of Chinese authorities and is expected to close later this year.