Core Viewpoint - Tianhua New Energy's acquisition of 75% equity in Tianhua Times represents a strategic move to strengthen its control over upstream lithium resources amid increasing competition in the lithium market [1][3]. Company Summary - Tianhua New Energy plans to acquire 75% of Tianhua Times from Pei Zhenhua for 1.254 billion yuan, valuing 100% of Tianhua Times at 1.672 billion yuan as of June 30, 2025 [1][2]. - The transaction is classified as a related party transaction since Pei Zhenhua is the controlling shareholder and chairman of Tianhua New Energy [1][2]. - Post-transaction, Tianhua New Energy will hold 75% of Tianhua Times, while CATL retains its 25% stake, ensuring collaboration with a leading battery manufacturer [2]. Industry Summary - The acquisition is seen as a necessary response to the current supply-demand dynamics in the lithium resource market, driven by the rising penetration of electric vehicles and stable demand for power batteries [3]. - The challenges faced by overseas lithium mining projects, including geopolitical issues and environmental regulations, have prompted Tianhua New Energy to shorten the resource acquisition cycle by acquiring an existing investment platform [3]. - The success of this acquisition will depend on Tianhua New Energy's ability to manage post-acquisition operations and effectively implement lithium mining projects [3][4].