(Yicai Global) Feb. 9 -- Shares in Jiangsu Hagong Intelligent Robot jumped by the exchange-imposed limit today after the Chinese smart robot maker said it is acquiring a lithium miner and a lithium ore processor in order to speed up access to the booming electric car battery raw materials industry.

Hagong Intelligent Robot [SHE:000584] closed up 10 percent at CNY8.38 (USD1.20) today. The stock only started trading again today after being suspended from Jan. 19 while the restructuring took place.

Hagong Intelligent Robot is buying a 70 percent stake in Jiangxi Dingxing Mining and a 49 percent stake in Jiangxi Xingli Technology, the Shanghai-based firm said. Xingli Tech is a unit of Dingxing Mining and after the deal is closed, the robot maker will have full control of Xingli Tech through direct and indirect ownership.

The takeover will allow Hagong Intelligent Robot to gain quick entry into the lucrative lithium ore sector in order to ensure sufficient supply of the raw materials needed for the future production of lithium carbonate, the firm said. Last year, the price of lithium compounds sjyrocketed on strong demand from EV battery makers, lining the pockets of the country’s main suppliers.

The purchase price of the transaction has not yet been determined as the evaluation of the companies’ assets is not yet complete, Hagong Intelligent Robot said. The funds will be raised through the issuance of new shares to the actual controller of Hagong Intelligent Robot.

Both Dingxing Mining and Xingli Tech are based in Yichun, eastern Jiangxi province, which is known as the “lithium capital of Asia” due to its rich reserves. Dingxing Mining has the right to mine 1.2 million tons of lithium a year while Xingli Tech can process 1.2 million tons of ore annually.

Editor: Kim Taylor