Xiamen Tungsten Xinneng plans to raise no more than 3.5 billion for the 30, 000-ton production expansion project of cathode materials for lithium batteries, etc.

SMM March 2: on the evening of March 1, Xiamen Tungsten Xinneng announced that the company intends to raise no more than 3.5 billion yuan from shares issued by Xiamen Tungsten Industry, Metallurgical Control Investment, Sangang Minguang and Panluo Iron Ore Mine. The net amount raised after deducting the issuance costs will be used for the 30000-ton lithium-ion battery cathode material expansion project, replenishment of working capital and repayment of bank loans.

Among them, 990 million is used in the 30000-ton lithium-ion battery cathode material expansion project in the workshop of Haihai base. The project implementation period is 18 months, and it is proposed to build a new plant on the existing land of Haiqi production base. As of the date of announcement, the project is going through relevant examination and approval procedures such as enterprise fixed assets investment filing, construction project environmental impact assessment and so on.

In addition, Xiamen Tungsten Xinneng mentioned in the announcement that under the circumstances of the sharp increase in the order demand of the company's ternary material products and the good development prospects in the future, the company's existing production capacity of cheap ternary material products has been unable to meet the needs of industry development and downstream customers. Therefore, in order to further improve the company's market share and comprehensive competitiveness, the company decided to continue to build an annual capacity expansion project of 30000 tons of lithium-ion battery cathode materials in the Haifeng base.

After the completion of this project, it will be mainly used for the production of high-performance NCM ternary materials, which will help the company to further expand its production scale, meet the needs of the rapid expansion of the downstream application market for lithium-ion batteries, and improve the company's core competitiveness.

According to the forecast of EVVolumes, the demand for power batteries is expected to be 919.4GW by 2025, which still has great potential and room for development compared with the current lithium-ion battery shipments.

As one of the key materials in the application field of lithium-ion battery and new energy vehicle, the cost proportion of high-performance NCM ternary material is about 30% 45%. It is the material with the largest scale and the highest output value in the lithium-ion battery industry chain. The increase in the demand for lithium-ion batteries brought about by the scale expansion of new energy vehicles will directly pull the market scale and shipments of cathode materials, thus bringing a higher degree of prosperity in the industry.

According to public data, a number of lithium-ion battery cathode materials enterprises have planned or completed fund-raising since 2021, and the funds raised are mainly used to invest in NCM ternary material capacity expansion projects:

Thus it can be seen that the expansion of the project is absolutely imperative for the company to further consolidate its dominant position in the field of cathode materials for lithium batteries.