Invest 235 million dollars! The project of lithium iron phosphate cathode material with an annual output of 100000 tons will be developed by the establishment of a factory in Indonesia by Longchuan Technology.

On the evening of November 8th, listed company Longyi Technology (603906) issued an announcement announcing that Changzhou Liyuan New Energy Technology Co., Ltd., a holding subsidiary of Changzhou Liyuan New Energy Technology Co., Ltd. will work with investment agency STELLAR INVESTMENT PTE. LTD. A joint venture company has been established in Indonesia to invest in the development and construction of lithium iron phosphate cathode material project with an annual capacity of 100000 tons in (IMIP), Morowali County, Central Sulawesi Province. The total investment of the project is about 235 million US dollars, and Changzhou Liyuan holds a 70 per cent stake in the joint venture company. At present, when the lithium iron phosphate industry is in full swing, Longyi Technology will become the first Chinese lithium iron phosphate manufacturer to go abroad and enter the overseas market.

Since the beginning of this year, the global new energy vehicle market has continued to grow at a high speed. Global electric vehicle registrations nearly doubled (98 per cent) in September from a year earlier to a record 685881, up 16 per cent from the record sales set in June. In that month, the global market share of electric cars reached an all-time high of 10.2%. More than 4.3 million electric vehicles have been registered globally in the first three quarters of this year, and global sales are expected to reach 6-7 million for the whole year, given that sales are usually stronger in the last few months. In the European market, the stronghold of traditional fuel vehicles, Tesla Model 3 won the championship with 24591 vehicles in September, beating many traditional best-selling fuel models, marking the unstoppable rise of new energy vehicles around the world.

With the rapid growth of the new energy vehicle market, the lithium iron phosphate industry upstream of the new energy vehicle has been advancing by leaps and bounds since the beginning of this year. The cost of lithium iron phosphate battery is relatively low, the safety is high, and the battery life is almost the same as that of ternary lithium battery. Because of its many advantages, many new energy head car companies, including Tesla and Weilai, have announced that they will use lithium iron phosphate batteries on more models. At the same time, the scale of electrochemical energy storage equipment is increasing rapidly, which will become a new growth point of demand for lithium iron phosphate in the future. It is estimated that by 2025, the global installed capacity of lithium iron phosphate is expected to reach 912 GWH, and the compound annual growth rate of demand for lithium iron phosphate from 2021 to 2025 is expected to be as high as 75%.

As one of the leading suppliers of lithium iron phosphate in China, Longyi Technology has announced a number of production expansion plans since the beginning of this year. At present, Longyi Technology has three intelligent production bases in the field of lithium iron phosphate in Tianjin, Changzhou and Suining, Sichuan (under construction). The new production capacity of lithium iron phosphate will exceed 200000 tons next year. and with Ningde era, new Yangfeng and other well-known enterprises in the capital level of in-depth cooperation. Longyi announced plans to build a factory in Indonesia, indicating that with the increasing heat of the global new energy vehicle market, battery material manufacturers located in the upper reaches of the whole plant have also begun to focus on the global market.

At present, Indonesia has become a hot investment country for global battery enterprises. The Ningde era Indonesian battery plant is expected to start production in 2024, South Korea's LG Chemical and Hyundai Motor's Indonesian battery plant will start construction this year, and Germany's Volkswagen and BASF will also invest in Indonesia's electric vehicle industry. Judging from the development process of Longfu, this enterprise has always attached great importance to the expansion of overseas markets. The data show that Longchuan Technology is the first automotive urea enterprise in China to export its products overseas, and it is also the first private lubricating oil enterprise to set up a branch overseas (Singapore Longyi). The announcement of the construction of Lithium Iron Phosphate Indonesia plant by Longchuan Technology marks the re-launch of production and sales layout in overseas markets after the successful entry into the Lithium Iron Phosphate industry. In the future, we will see more of Longyi, a Chinese supplier, on the stage of the global new energy automobile industry.