Longqi Science and Technology invests 1.9 billion to build Xiangyang Lithium Iron Phosphate material Base

On April 8, Longyi Science and Technology announced that the company plans to sign an "Investment contract" with the Xiangcheng District people's Government of Xiangyang City, and plans to invest 1.9 billion yuan to build a production base of lithium iron phosphate cathode materials in Xiangcheng District.

According to the announcement, the first phase of Longchuan Science and Technology expansion plans to build a project with an annual production capacity of 50, 000 tons of lithium iron phosphate and 25000 tons of iron phosphate, with a construction period of 6 months. The second phase plans to build additional projects with an annual output of 50, 000 tons of lithium iron phosphate and 25000 tons of iron phosphate, and plans to complete the installation, commissioning and commissioning of the equipment within 24 months after the first phase of the project is put into production.

It is understood that the main business of Dragon Technology includes lubricants for vehicle environmental protection fine chemicals, diesel engine exhaust treatment liquid, engine coolant, vehicle care products, and other products. Through the acquisition of lithium iron phosphate related assets under Bertri's name through the holding subsidiary Changzhou Lithium Source, it is extended to the field of lithium iron phosphate cathode materials. In 2021, Changzhou Liyuan achieved an operating income of 1.89 billion yuan and a net profit of 176 million yuan.

At present, in the field of lithium iron phosphate, Longyi Technology's customers are domestic mainstream battery manufacturers such as Ningde Times, Ruipu Energy, Yiwei Lithium Energy, Lishen Battery, and continue to promote the expansion of overseas customers such as Japan, South Korea and the United States. at present, it has entered the stage of sample pilot test, pilot test and small batch orders.

On April 8, Longyi Technology also released its annual report for 2021, saying that the company's operating income last year was 4.054 billion yuan, an increase of 111.72% over the same period last year; the net profit belonging to shareholders of listed companies was 351 million yuan, an increase of 72.98% over the same period last year; the main growth driver came from lithium iron phosphate business.

The annual report shows that in 2021, the output of lithium iron phosphate cathode material of Longchuan Technology is 31100 tons, the sales volume is 30500 tons, and the operating income is 1.877 billion yuan. Among them, the output of lithium iron phosphate cathode material contains 5839.66 tons of outsourced processing procurement.

As the lithium iron phosphate market continues to be hot, since 2021, chemical enterprises such as Longbai Group, China Nuclear Titanium dioxide, Anada, Yuntianhua, Chuanfa Dragon Python, Fengyuan shares, Xinyangfeng and Xingfa Group have also entered the field of iron phosphate and lithium iron phosphate materials one after another.

According to China's understanding of batteries, the main manufacturers of lithium iron phosphate in China are Hunan Yuneng, German Nano, Guoxuan Hi-Tech, Hubei Wanrun, Changzhou Lithium Source, Chongqing Teri, Peking University and so on. From the perspective of the market pattern, the share of the top six enterprises in the industry is more than 80%, and the degree of concentration is very high.

In recent years, due to the influx of capital into the lithium iron phosphate material industry, capacity has expanded rapidly, which may lead to structural overcapacity. Under this background, although the market prospect of lithium iron phosphate is broad, the competition is becoming increasingly fierce.