The "mysterious mining tycoon" strikes again, four times gradually acquiring Asia's largest single lithium mine

Article | Huaxia Energy Network

After five years and an investment of 7.4 billion yuan, the “mysterious mining tycoon” Yao Xiongjie has finally acquired the Mutong Lithium Mine.

Huaxia Energy Network has learned that recently, Shengxin Lithium Energy (SZ: 002240) announced that the company plans to acquire a 13.93% stake in Yajiang Huiyong Mining Co., Ltd. (hereinafter referred to as “Huiyong Mining”) for 1.26 billion yuan in cash. After the transaction is completed, the company will hold 100% ownership of Huiyong Mining and control its core asset, the Mutong Lithium Mine.

The Mutong Lithium Mine is the largest proven hard-rock lithium deposit in Asia to date. Notably, this is Shengxin Lithium Energy’s fourth acquisition of a stake in the Mutong Lithium Mine, with total transaction amounts exceeding 7.4 billion yuan.

Behind Shengxin Lithium Energy is the mysterious mining tycoon Yao Xiongjie. His control of the “Shengtun Group” includes Shengxin Lithium Energy and Shengtun Mining (SH: 600711), with a combined market value approaching 90 billion yuan. Their businesses span lithium battery materials and energy metals such as copper, cobalt, and nickel.

In 2019, Yao Xiongjie entered the lithium battery industry. Shengxin Lithium Energy has now established a large-scale lithium salt supply system, with a global lithium salt production capacity exceeding 137,000 tons per year, and owns lithium mineral resources in Sichuan, Zimbabwe, Argentina, and other locations.

Currently, the lithium salt industry is experiencing a “mining rush,” with giants like Salt Lake Co. (SZ: 000792) and Tianqi Lithium (SZ: 002466) continuously increasing their lithium mineral resources. Companies lacking high-quality deposits face the risk of being eliminated.

Yao Xiongjie’s acquisition of the “largest single lithium mine in Asia” will further strengthen his bargaining chip against major mining giants. However, after massive spending on acquisitions, Shengxin Lithium Energy’s financial pressure has once again become apparent.

Acquiring the Mutong Lithium Mine in Four Installments

The Mutong Lithium Mine is located in Yajiang County, Sichuan Province, within the Jiameika lithium-beryllium deposit. The deposit is situated along the “Asian Lithium Belt” and is a core distribution area for domestic lithium resources, gathering industry giants like CATL (SZ: 300750) and Tianqi Lithium.

According to the mining license issued by the Ministry of Natural Resources in October 2024 and a report from the Sichuan Mineral Resources Reserves Evaluation Center, the Mutong Lithium Mine has an estimated proven ore resource of approximately 61.095 million tons, with lithium oxide resources reaching 989,600 tons, and an average grade of 1.62%. This far exceeds the average level of hard-rock lithium deposits in China and is recognized by the industry as “the largest proven hard-rock lithium deposit in Asia to date.”

Currently, the exploration rights for the Mutong Lithium Mine are exclusively held by Huiyong Mining. Shengxin Lithium Energy’s full acquisition of Huiyong Mining is driven by the rich lithium resources of the mine.

As early as 2020, Shengxin Lithium Energy set its sights on Huiyong Mining. At that time, Shengxin Lithium Energy, through its wholly owned subsidiary Shengtun Lithium, initially acquired a 15.10% stake in Huiyong Mining at a cost of about 2.624 billion yuan, securing preliminary resource rights for the Mutong Lithium Mine.

In the second half of 2025, Shengxin Lithium Energy accelerated its integration efforts, initiating two key acquisitions.

In September, Shengxin Lithium Energy purchased a 21% stake in Sichuan Qicheng Mining for 1.456 billion yuan, increasing Shengtun Lithium’s stake in Qicheng Mining to 70%. At that time, Qicheng Mining held a 70.97% stake in Huiyong Mining, significantly increasing Shengxin Lithium Energy’s indirect holdings in Huiyong Mining.

In December of the same year, Shengtun Lithium further acquired the remaining 30% of Qicheng Mining for 2.08 billion yuan in cash, achieving full control of Qicheng Mining and indirectly holding 70.97% of Huiyong Mining. Combined with the previous direct holding of 15.10%, Shengxin Lithium Energy’s total stake reached 86.07%.

Shengxin Lithium Energy’s global business layout (Source: company website)

On February 4, 2024, Shengxin Lithium Energy launched its final acquisition round. The company spent 1.26 billion yuan to acquire the remaining 13.9% stake in Huiyong Mining. Valued at 9 billion yuan, the transaction allowed Shengxin Lithium Energy to achieve 100% ownership of Huiyong Mining, gaining full control of the high-quality Mutong Lithium Mine.

In the announcement, Shengxin Lithium Energy stated: “The company will leverage its experience in developing lithium mines in high-altitude regions of Sichuan, actively promote the development and construction of the Mutong Lithium Mine, and quickly improve the company’s self-sufficiency in lithium resources, establishing a stable and reliable resource supply system.”

The Mysterious Mastermind Behind the Deal

Shengxin Lithium Energy’s expenditure of 7.4 billion yuan to acquire the Mutong Lithium Mine was orchestrated behind the scenes by the mysterious mining tycoon Yao Xiongjie.

Born in 1967 in Longyan, Fujian Province, Yao Xiongjie is a native of the same hometown as ByteDance founder Zhang Yiming, Meituan founder Wang Xing, and Zijin Mining’s key figure Chen Jinghe. In 1991, he moved to Shenzhen with his brother and sister to work in a camera equipment company as a salesperson. In 1993, unwilling to be a “beast of burden,” he started his own business, founding Shenzhen Xiongzhen Investment.

The source of Yao Xiongjie’s initial capital and the companies he invested in, as well as his earnings, remain a mystery. What is known is that just five years later, he spent 40 million yuan to acquire nearly 40% of Longzhou Shares (SH: 600711) from state-owned assets, becoming the chairman of a listed company at age 31.

Longzhou Shares was later renamed Xiongzhen Group. Under Yao Xiongjie’s leadership, the group expanded into real estate, smart vending machines, and other industries. By 2005, however, Xiongzhen Group’s revenue was only about 17 million yuan, with a loss of 110 million yuan. That year, its stock price fell near 1 yuan per share, and it was marked as “*ST.”

In 2007, Yao Xiongjie began transitioning into the mineral sector. Through connections with Chen Jinghe, he acquired a 42% stake in Fujian Youxi Sanfu Mining. In 2008, he bought a 60% stake in Xingsheng Mining. The company was renamed Xiongzhen Mining, and two years later, it was renamed Shengtun Mining (currently valued around 50 billion yuan).

In 2019, Yao Xiongjie once again played the capital game, injecting his high-quality asset Shengtun Lithium into Weihuasheng (威华股份) for 923 million yuan, and renaming the company Shengxin Lithium Energy, officially entering the new energy lithium battery sector (currently valued close to 40 billion yuan).

Since then, Yao Xiongjie has continued to “buy and buy,” building a “lithium empire,” with the Mutong Lithium Mine being the latest “brick” in this edifice.

Through acquisitions and stakes, Shengxin Lithium Energy has expanded its resource projects globally. Its subsidiary Aoyino Mining owns the Yelonggou spodumene mine in Jinchuan, Sichuan, with proven lithium oxide resources of 169,500 tons, and exploration rights for lithium and other metals at Taiyanghekou. Zimbabwean subsidiary holds 40 rare metal mining rights, with five core mineral rights containing 88,500 tons of lithium oxide resources. Additionally, Shengxin Lithium Energy holds the independent operation rights for the SDLA salt lake in Argentina and multiple salt lake exploration projects.

Despite being a true mining magnate, Yao Xiongjie remains extremely low-profile, operating behind the scenes. Huaxia Energy Network notes that Shengxin Lithium Energy is currently chaired by Zhou Yi and managed by Deng Weijun, while Shengtun Mining is chaired by Xiong Bo and managed by Long Shuang. Yao Xiongjie does not hold any official position publicly and rarely participates in company activities.

Shifting Strategies to Resolve Financial Difficulties

Yao Xiongjie’s frequent large-scale mining acquisitions have strained Shengxin Lithium Energy’s cash flow.

As of the third quarter of 2025, Shengxin Lithium Energy’s cash reserves were only 2.56 billion yuan. Yet, in December 2025 and February 2026, the company planned to spend 3.28 billion yuan on acquisitions of Qicheng Mining and Huiyong Mining. Meanwhile, the company’s debt ratio rose from 41.69% to 50.34% within a year, the highest in nearly 14 years, indicating financial pressure.

It’s worth noting that Shengxin Lithium Energy’s financial issues have existed for some time. In August 2024, the company announced plans to list in Hong Kong and raise funds. The company stated that the Hong Kong listing was part of its global strategy, aimed at expanding international financing channels and enhancing its international brand image and competitiveness.

In reality, the main purpose of Shengxin Lithium Energy’s Hong Kong IPO was to resolve its debt crisis. Huaxia Energy Network observed that in the first half of 2024, Shengxin Lithium Energy’s revenue was 2.579 billion yuan, a 45.80% decrease year-on-year; net loss was 187 million yuan, turning from profit to loss, compared to a profit of 611 million yuan in the same period last year. By mid-2024, short-term borrowings increased by 33.16%, long-term borrowings by 39.08%, and non-current liabilities due within one year increased by 19.33%.

Shengxin Lithium Energy’s debt changes (Source: financial reports)

However, for a capital-savvy figure like Yao Xiongjie, these financial pressures are not insurmountable. On October 31, 2025, Shengxin Lithium Energy announced the termination of its Hong Kong listing financing plan, replacing it with a private placement involving Zhongchuangxin Hang (HK: 03931) and Huayou Holdings Group, both industry giants with total assets exceeding 100 billion yuan.

This move effectively “killed two birds with one stone.”

On one hand, it alleviated Shengxin Lithium Energy’s financial crisis. According to the private placement plan, Zhongchuangxin Hang and Huayou Holdings would subscribe 945 million yuan and 1.128 billion yuan respectively, providing much-needed liquidity for the company.

On the other hand, by bringing in strategic investors, Shengxin Lithium Energy could achieve industrial synergy and enhance its competitiveness. Zhongchuangxin Hang is a leading domestic battery manufacturer ranked fifth globally in 2025 for power battery shipments and fourth in energy storage cell shipments worldwide; Huayou Holdings’ business covers cobalt and nickel resource development, non-ferrous metallurgy, battery materials, and recycling in the new energy lithium battery industry chain.

By buying mines at all costs to significantly increase resource self-sufficiency and attracting strategic investors to partner with industry giants, Yao Xiongjie has played a good hand in the fiercely competitive lithium mining industry. In this new cycle of energy and mining, the resourceful Yao Xiongjie is expected to stir up more waves. The industry awaits with anticipation.