BYD Auto Co., Ltd. set up a new entity together with Qinghai Salk Lake Industry Group Co., Ltd. and a Shenzhen-based investment company for lithium resource mining in Salt Lake in Qinghai Province, the carmaker said in an announcement on Wednesday. 

Salt Lake, covering over 5,000 square kilometers on the southern edge of the Qaidam Basin, boasts 14 million tons of lithium-associated resources. 

BYD invested 245 million yuan (35.6 million U.S. dollars) in the new company, accounting for a 49 percent stake. Qinghai Salk Lake Industry Group Co., Ltd. holds a 49.5 percent stake by funding 247.5 million yuan (35.9 million U.S. dollars). The Shenzhen-based company occupies a 1.5 percent stake. 

The new entity will focus on the development, production, and sales of lithium resources in Salt Lake. It is expected to satisfy BYD's need for lithium carbonate resources and help it reduce costs in the push for new-energy vehicles. 

Email: lansuying@nbd.com.cn