LBTI Lithium and Boron Technology Inc (CE)

Item 1.01 Entry into a Material Definitive Agreement.

On March 27, 2020 (PRC time), Qinghai Zhongtain Boron & Lithium Technology Co., Ltd. (“Qinghai”), a wholly owned subsidiary of Lithium & Boron Technology, Inc. (“LBTI”) entered into an Investment Cooperation Agreement, Memorandum of Cooperation and Licensing Agreement with Xi'an Jinzang Membrane Environmental Protection Technology Co., Ltd. (Xi’an Jinzang) to produce up to 20,000 tons of battery grade lithium hydroxide and 10,000 tons of lithium carbonate annually, subject to funding. The parties will form a joint venture company to process brine supplied by Qinghai. Qinghai will own 51% of the joint venture and Xi’ Jinzang will own the remaining 49%. The agreements set forth various funding requirements, licensing arrangements and project milestones by the parties. LBTI expects that a total of $40 million USD will be required to meet the initial annual production target of 3,000 tons of lithium hydroxide by the second quarter of 2021. The joint venture will require additional funding of approximately $340 million USD to reach full production capacity. The agreements outline additional responsibilities of the parties to contribute mineral resources and technology to the joint venture as well as arrangements for corporate governance, liability for breaches of the agreements, confidentiality provisions and mutual covenants, representations and warranties.

The description of the Investment Cooperation Agreement, Memorandum of Cooperation and Licensing Agreement referred to above is not complete and is qualified by reference to Exhibits 10.33, 10.34 and 10.35 filed herewith and is incorporated by reference hereto.