(Corrects Paragraph 6 to say co cut its sales forecast last week, not this week)
Sept 4 (Reuters) - Australia’s Pilbara Minerals on Wednesday said a Chinese electric-vehicle battery manufacturer has bought an 8.5% stake in the company as part of a A$91.5 million ($61.8 million) capital raising.
Contemporary Amperex Technology Co, one of China’s leading electric-vehicle battery makers, bought the stake through a A$55 million placement while an additional A$36.5 million was raised through an institutional placement.
The fund-raising comes a few days after the miner took a stake in its flagship Pilgangoora lithium project in Western Australia off the market for lack of an appealing offer.
The raising will provide working capital for the ramp-up of the Pilgangoora operation and will also fund Pilbara’s participation in a joint venture with South Korea’s POSCO for a chemical conversion plant, the company said in a statement.
Pilbara said a Share Purchase Plan will also be offered to raise up to an additional A$20 million.
Last week, the Western Australian miner cut its sales forecast and curbed spending plans amid a downturn in the market for the battery raw material.
The lithium market is going through a lean phase as China’s sales of electric vehicles fall following sweeping changes to subsidies.
Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Richard Pullin