In March 2016, Hubei
Hongyuan decided to install new LiPF6 production equipment. This is
mainly because the company, whose current capacity layout has fallen behind
other competitors, intends to seize the explosively growing Li-ion battery
market and improve the economic effect, according to analyst CCM.
On
3 March, 2016, Hubei Hongyuan Pharmaceutical Technology Co., Ltd. (Hubei
Hongyuan) announced the plan to launch a 4,000 t/a lithium hexafluorophosphate
(LiPF6) project in the new plant located in the Luotian Economic
Development Zone (Hubei Province). Now the project is under environmental
impact assessment.
Accordingly, Hubei Hongyuan will adopt its current LiPF6 production
technology – based on dichloro-hexafluorophosphoric acid (a solid superacid)
and through the rheological phase reaction method – to finish the project.
Specifically, the project comprises 2 phases. Phase I is to complete all civil
architecture, engineering and construction work, and install the first batch of
devices (2,500 t/a), and Phase II is to install the second batch of devices
(1,500 t/a), with supporting facilities, such as those for environmental
protection.
Hubei Hongyuan, founded in 2002, is well-known for its 30+ products in 7
series, including chemicals, pharmaceutical intermediates, active
pharmaceutical ingredients, healthcare products, additives for beverages, food
and feed, alternative energy and polymers.
Hubei
Hongyuan’s dedication to LiPF6 production capacity expansion, can be
mainly attributed to:
-
Positive
attitude towards the explosively growing Li-ion battery market
-
Its
backward capacity layout compared to other competitors
In order to seize the opportunity, it is of great necessity for the company to
expand its operation scale.
Now the Li-ion battery industry has been activated thoroughly by the largely
increasing production and sales of alternative energy vehicles (production: up
by 330% to 340,471 units; sales: up by 340% to 340,471, in 2015). In
particular, the LiPF6 segment has transferred to short supply, from
the previous oversupply, with continuously expanding supply gap, which has
pushed up the price, from USD13,000/t (RMB85,000/t) in early 2015 to now over
USD61,176/t (RMB400,000/t).
Under this, many enterprises have plans to expand the production capacity for
LiPF6:
-
Do-Fluoride
Chemicals Co., Ltd.: from 2,500 t/a to 6,000 t/a in late 2016
-
Guangzhou
Tinci Materials Technology Co., Ltd.: from 2,000 t/a to 4,000 t/a in late
2016
-
Jiangsu
Jiujiujiu Technology Co., Ltd.: from 2,000 t/a to 5,000 t/a in 2017
Hubei Hongyuan, with only 400 t/a, shows fairly small competitiveness. In order
to meet the increasing demand and better seize the opportunity to make profits,
it is necessary for the company to expand production capacity.
Notably, it takes a relatively long period – about 1 year or 1.5 years – for a
LiPF6 project to be constructed and operated, due to the complicated
production process. As the price of its raw material, lithium carbonate is also
increasing sharply, CCM predicts that the LiPF6 price will stay high
in 2016.
About CCM:
CCM is the leading market intelligence
provider for China’s agriculture, chemicals, food & ingredients and
life science markets. Founded in 2001, CCM offers a range of data and
content solutions, from price and trade data to industry newsletters and
customized market research reports. Our clients include Monsanto,
DuPont, Shell, Bayer, and Syngenta.
For more information about CCM, please visit www.cnchemicals.com or get in touch with us directly by emailing econtact@cnchemicals.com or calling +86-20-37616606.
Tag: LiPF6