Dazhong Mining (SHE:001203) partnered with Wanhua Chemical (Sichuan) Battery Materials Technology to establish a joint venture with a registered capital of 300 million yuan, according to a Shenzhen bourse filing on Tuesday.

The Chinese mining company will invest 240 million yuan into the venture, while Wanhua Chemical will inject 60 million yuan, owning a respective 80% and 20% of the venture.

The joint venture is part of a lithium salt plant that will produce 200,000 tons every year. The project has an estimated investment of 2.2 billion yuan.

The parties also signed a deal with Meishan High-Tech Committee to be able to push through with the project that would be located in Wanhua Chemical Sichuan Industrial Park, Meishan High-Tech Park, China.

Dazhong's shares surged over 4% during the afternoon trade.