1 billion yuan! 200000 tons of high-energy cathode materials and related projects of Fengyuan Co., Ltd. have been settled in Yunnan.

According to the China Automotive Power Battery Industry Innovation Alliance, the number of power batteries installed in China totaled 154.5 GWH in 2021, an increase of 142.8% over the same period last year. Among them, lithium iron phosphate batteries loaded a total of 79.8 GWH, accounting for 51.7% of the total loading, an increase of 227.4% over the same period last year.

Benefiting from the continuous increase in installed capacity, Lithium Iron Phosphate cathode material Company has increased its capacity layout. Following the announcement on January 12 that it plans to raise an additional 940 million yuan to expand the production of 50, 000 tons of lithium iron phosphate cathode materials, Fengyuan shares (002805) announced new actions.

On the evening of January 14, Fengyuan shares and Yuxi Municipal people's Government signed a "Strategic Cooperation Agreement". According to the agreement, Fengyuan shares or wholly-owned subsidiaries plan to invest in the construction of 200000 tons of lithium battery high-energy cathode materials projects and supporting construction of lithium salt and iron phosphate projects with a total scale of 200000 tons within the jurisdiction of Yuxi City, Yunnan Province, which will be completed in stages before 2025. The project is to be built in three phases. Among them, the first phase of 50,000 tons of lithium iron phosphate project is expected to start construction in March 2022. When the conditions are available, the specific investment progress, scale and sequence of the next two phases of the project will be promoted by the company according to the actual demand.

While building the cathode material project base, Fengyuan Co., Ltd. plans to build a clay lithium extraction pilot line. The production scale of the pilot line is initially set at 1000 tons per year, and is scheduled to be completed by the end of 2022. Yuxi Municipal people's Government supports the company to obtain clay raw materials for scientific research pilot-scale lithium extraction in accordance with the rules and regulations.

In addition to the above projects, Fengyuan and Yuxi Municipal people's Government plan to establish a Lithium Resources Development and Utilization Technology Research Institute in Yuxi City, together with Qingdao Bioenergy and process Research Institute of the Chinese Academy of Sciences and Zhongke Fengyuan High Energy Lithium Battery Materials Research Institute. The scale of the construction land of the project is about 1000 mu. Among them, the first phase of land is 247 mu, which is located in Hongta Industrial Park, Yuxi City.

On the same day, Fengyuan Lithium Energy signed an Investment Agreement with the people's Government of Hongta District, Yuxi City. Fengyuan Lithium Energy plans to invest 200000 tons of lithium battery high-energy cathode materials and related projects in Yuxi City, which will be built in three phases. Among them, the first phase has an annual output of 50, 000 tons of lithium iron phosphate cathode material and 1000 tons of clay lithium extraction pilot line, with a total investment of about 1 billion yuan, and the follow-up project will be actively promoted according to the actual situation of the first phase of the project.

According to the agreement, Fengyuan LiNeng initiated a project company to set up an independent legal person, which is a wholly owned subsidiary of Fengyuan LiNeng, with a registered capital of 100 million yuan, and Hongta District of Yuxi City as the place of industrial and commercial registration and tax registration.

Fengyuan shares said that the clay lithium extraction pilot line involved in this investment agreement and the subsequent planning of lithium salt production capacity and iron phosphate production capacity, if carried out smoothly, will help to ensure that the company's raw materials meet the high-quality requirements of production technology. at the same time, reduce the adverse impact of raw material price fluctuations on the company, constantly improve the stability of the supply chain, and then continue to enhance the company's anti-risk ability and profitability. In addition, it also has positive significance for the company to open up the upstream industrial chain and optimize the industrial layout, which is in line with the company's development strategy and overall interests.

In addition, recently, Fengyuan shares received a notice that Shanneng Xinye (Zaozhuang) New and Old Kinetic Energy conversion Fund Partnership (Limited Partnership) completed industrial and commercial registration and private equity fund filing, and obtained the business license issued by Zaozhuang Municipal Administrative examination and approval Service Bureau and the filing certificate of private equity fund issued by China Securities Investment Fund Industry Association.

It is understood that Fengyuan shares held the 10th meeting of the Fifth Board of Directors on October 22, 2021, and examined and passed the "proposal to participate in the Investment and Establishment of an Industrial Fund." it is agreed that the company and Zaozhuang Xinye and other investors will jointly contribute to the establishment of the "Shanneng New Industry (Zaozhuang) New and Old Kinetic Energy conversion Fund Partnership (Limited Partnership)". The long-term size of the industrial fund is 1 billion yuan, and the first phase is 200 million yuan. As a limited partner, the company intends to contribute RMB 10 million, accounting for 5% of the initial subscription of the industrial fund, and authorize the management of the company to handle related matters, including but not limited to the signing of the agreement, within the above-mentioned amount.