30,000 tons of ternary materials! 20,000 tons of lithium iron phosphate! The two bases of Xiamen tungsten Xinneng work together.

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In the face of constantly refreshing the agency's expectations of new energy vehicle production and sales and a substantial increase in the installed capacity of power batteries, positive material manufacturer Xiamen Tungsten Xineng (688778) pressed the production expansion acceleration button.

On the evening of December 14, Xiamen tungsten Xinneng announced that with the sharp increase in the order demand for ternary material products, the company's existing and under construction production capacity of ternary material products has been unable to meet the future order demand, in order to meet the market demand, to improve the company's market share and competitiveness, the company plans to invest in the construction workshop lithium-ion battery cathode material 30,000 tons expansion project (the name is subject to the actual project).

The above expansion projects are mainly used in the production of high-nickel ternary cathode materials for electric vehicles at home and abroad, with a total investment of 990 million yuan and will be put into production in September 2023. The source of funding is Xiamen tungsten Xinneng's own and self-raised funds.

According to reports, the main production expansion project currently under construction in Xiamen Tungsten Xineng is the Haiyi Base industrialization Project with an annual output of 40,000 tons of lithium-ion battery materials. The first and second phase of the project (with a total annual production capacity of 20,000 tons) is one of the initial public offering and listing projects of the company. In order to give full play to the scale effect and meet the needs of the downstream market, the company invested 620 million yuan to start the production capacity construction of the third phase of the project at the same time of raising and investing in the project. To carry out the equipment procurement and installation project of the production line of lithium-ion battery cathode materials with an annual output of 20,000 tons in Haiyang base.

To sum up, after the completion of the industrialization project of lithium-ion battery materials with an annual production capacity of 40,000 tons (Phase I, II and III) and the expansion project of 30,000 tons, the company's Haifu base will reach an annual production capacity of 70,000 tons of lithium battery cathode materials.

Xiamen Tungsten Xinneng said that after the completion of the project, it will help to expand capacity and increase efficiency. With the expansion of the scale of production capacity, it reflects the scale effect, further reduces production costs, and improves the competitiveness of products.

In addition to the Haicang base, Xiamen Tungsten Xinneng currently has Haicang, Sanming and Ningde three production bases, with a total production capacity of 70,000 tons of lithium cathode materials and a scale of 65000 tons of production and sales. The company's products have been serving Panasonic, Samsung, Ningde New Energy, LGC, AVIC Lithium, BYD, Yiwei Lithium Energy, Guoxuan Hi-Tech and other domestic and foreign well-known battery customers, with a market share among the best in the same industry.

On the evening of the 14th, Xiamen Tungsten Xinneng also announced that the company's ternary material customers are highly coincident with lithium iron phosphate customers, and have lithium iron phosphate research and development capabilities and technical reserves, and the company intends to enter the lithium iron phosphate market to further consolidate the leading position of cathode materials and enhance anti-risk ability.

To sum up, after the completion of the industrialization project of lithium-ion battery materials with an annual production capacity of 40,000 tons (Phase I, II and III) and the expansion project of 30,000 tons, the company's Haifu base will reach an annual production capacity of 70,000 tons of lithium battery cathode materials.

Xiamen Tungsten Xinneng said that after the completion of the project, it will help to expand capacity and increase efficiency. With the expansion of the scale of production capacity, it reflects the scale effect, further reduces production costs, and improves the competitiveness of products.

In addition to the Haicang base, Xiamen Tungsten Xinneng currently has Haicang, Sanming and Ningde three production bases, with a total production capacity of 70,000 tons of lithium cathode materials and a scale of 65000 tons of production and sales. The company's products have been serving Panasonic, Samsung, Ningde New Energy, LGC, AVIC Lithium, BYD, Yiwei Lithium Energy, Guoxuan Hi-Tech and other domestic and foreign well-known battery customers, with a market share among the best in the same industry.

On the evening of the 14th, Xiamen Tungsten Xinneng also announced that the company's ternary material customers are highly coincident with lithium iron phosphate customers, and have lithium iron phosphate research and development capabilities and technical reserves, and the company intends to enter the lithium iron phosphate market to further consolidate the leading position of cathode materials and enhance anti-risk ability.

What is noteworthy is that at present, with the continuous high heat of the new energy vehicle and energy storage market, the lithium iron phosphate market has attracted a large number of capital, not only the existing lithium iron phosphate enterprises actively expand production, but also listed companies in titanium dioxide, phosphorus chemical industry and other fields have entered the bureau one after another, and the market competition in this field will become more and more fierce in the future.

In the face of the lithium iron phosphate race track with continuous improvement and increasingly fierce competition, Xiamen Tungsten Xineng said that the company will take the route of high-end and differentiation by making use of the advantages of technology and process, and develop lithium iron phosphate materials with high rate and good performance at low temperature. it is used in special batteries, 48V start and stop and other fields that require high performance. Learn from the company's own accumulated quality control advantages in lithium cobalt oxide and ternary products to improve the quality level of lithium iron phosphate products.

In addition, Xiamen Tungsten Xinneng jointly established a joint venture between Ya Hua Lithium Industry and Cangya Investment as a project company, which also increased the certainty of the development of the company's lithium iron phosphate industry.

The joint venture company Ya'an Xiamen Tungsten Xinneng has a registered capital of 500 million yuan, Xiamen Tungsten Xineng contributed 415 million yuan, holding 83%, Yahua Lithium Industry contributed 50 million yuan, held 10%, Cangya Investment contributed 35 million yuan, held 7%.

Yahua Lithium Industry has started the construction of a project with an annual production capacity of 50, 000 tons of battery-grade lithium hydroxide and 11000 tons of lithium chloride and its products in 2021. After the completion of the project, the comprehensive production capacity of Yahua Lithium Industry will exceed 100000 tons. Xiamen Tungsten Xinneng cooperation with Yahua Lithium Industry can provide rich and price-advantageous lithium resources for the joint venture company and ensure the supply chain stability of the joint venture company. At the same time, Cangya investment partners have rich experience in research and development, production management and market development in lithium iron phosphate. Cangya investment, as a side of the joint venture, will help to further improve the core competitiveness of the joint venture company.