Yunnan National Titanium Metal, a subsidiary of Shenzhen-listed LB Group, has secured 2.272 billion yuan ($321.2 million) in an equity financing round, according to a company announcement on May 25. 

The equity financing round has drawn in a total of 19 strategic investors including Shenzhen Capital Group, the venture investment vehicle of the Shenzhen government — which injected 900 million yuan ($127.2 million). State-owned China National Building Material’s New Materials Fund also invested 400 million yuan ($56.6 million) in the round, per the release. 

Titanium sponge, which is made through the extraction of titanium minerals, is widely used in industrial, aerospace, and defence applications. China produced 210,000 tonne of titanium sponge in 2021, making it the largest maker in the world contributing nearly 60% of the global production, according to data from the U.S. Geological Survey (USGS).

Founded in 2019, the Chuxiong city-registered firm has now reached a production capacity of 50,000 tonne of titanium sponge per year; while LB Group, as the world’s biggest manufacturer of titanium dioxide pigments — a white pigment that is widely used in the coatings industry, is capable to produce 1.5 million tonne of titanium dioxide pigments per year. 

The group obtained its approval to list shares on the Hong Kong Stock Exchange (HKEX) from the China Securities Regulatory Commission (CSRC) in January 2022, however, the firm let its application lapse in November amid the IPO market downturn in Hong Kong.