According to an announcement of China’s titanium white
enterprise Lomon Billions, in order to implement an innovation-driven
development strategy, Lomon Billions’s subsidiary, Henan Baili New Energy Materials
Co., Ltd, plans to invest RMB 300 million to establish a company named Henan
Longbai New Material Technology Co., Ltd in Qinyang, Henan province. The new
company will mainly engage in the production, marketing, as well as research
and development of lithium-ion batteries, as well as the recycling of electric
vehicle batteries.
According to a representative of Henan
Baili New Energy Materials Co., Ltd, ferrous sulfate, which is a byproduct of
titanium white, can be used as a raw material for lithium iron phosphate. The
company plans to develop a project for the production of lithium iron phosphate
from ferrous sulfate, and as a result, the company can guarantee excellent
performance, low production cost, as well as high recyclability.
Lithium iron phosphate price
skyrockets amid high demand for batteries
Currently, the two main types of batteries for renewable
energy vehicles are lithium iron phosphate batteries and ternary lithium batteries.
With the decline of renewable energy vehicle subsidies in China, lithium iron
phosphate batteries have become the primary option for many vehicle
enterprises. However, due to the high demand for lithium iron phosphate batteries,
the supply of lithium iron phosphate is insufficient for the current market. As
a result, some key lithium iron phosphate battery enterprises have closed their
businesses.
The high demand of lithium iron phosphate
batteries among downstream industries has also increased the price of lithium
iron phosphate. Data shows that the quoted price of lithium iron phosphate in
essential lithium iron phosphate enterprises was RMB 34,000/ton in November
2020. However, in January 2021, the quoted price of lithium iron phosphate
increased to RMB 39,000/ton, and the quoted price of lithium iron phosphate on
February 19, 2021 was RMB 43,000/ton. Under these conditions, many listed
companies have increased their production in order to take up a larger market
share.
CNNC Hua Yuan
Titanium Dioxide Co., Ltd. announces new lithium iron phosphate production
project
Another titanium white enterprise, CNNC Hua Yuan Titanium
Dioxide Co., Ltd, also made an announcement that its subsidiary company Gansu
Dongfang Titanium Industry Co., Ltd plans to invest in and establish a project
of annual production of 500 thousand tons of lithium iron phosphate. The
project will be divided into three phases, with 10 thousand tons of lithium
iron phosphate production in the first phrase, 20 thousand tons of lithium iron
phosphate production in the second phrase, and 20 thousand tons of lithium iron
phosphate production in the third phrase. The project’s goal is mainly to
establish a production line of lithium iron phosphate and its supporting
facilities. The total estimated investment is RMB 121 million, and the
estimated annual profit of the project is RMB 528 million.
After the announcement made by CNNC Hua Yuan
Titanium Dioxide Co., Ltd, the Shenzhen Stock Exchange sent a letter to CNNC
Hua Yuan Titanium Dioxide Co., Ltd asking for clarification regarding the
purpose of the investment. On February 8, CNNC Hua Yuan Titanium Dioxide Co.,
Ltd replied to the Shenzhen Stock Exchange, saying that currently the company’s
fund is over RMB 500 million, which can completely satisfy the funding
requirement during the first phase. Meanwhile, the project for the annual
production of 500 thousand tons of lithium iron phosphate can not only reduce
the production cost of titanium white, but also can achieve high efficiency and
high production value.
For more information, please check our resources
on China’s
Li-ion Batteries market.