On the evening of February 17, the Shanghai Stock Exchange announced the results of the meeting of the Shanghai Municipal Committee of Kechuang Board. Jiangsu Huasheng Lithium Electric Materials Co., Ltd. (hereinafter referred to as: Huasheng Lithium Power) was approved for the first time. Huasheng Lithium Power was founded in 1997, focusing on the research, development, production and sales of electrolyte additives for lithium batteries. The products are electrolyte additives represented by vinyl carbonate (VC), fluorinated ethylene carbonate (FEC) and lithium borate dioxalate (BOB), as well as special silicone products represented by isocyanate propyl trimethoxysilane (IPTS) and isocyanate propyl triethoxysilane (TESPI).
According to the draft of the meeting, Science and Technology Innovation Board IPO, Huasheng Lithium Power plans to raise 700 million yuan, of which 674 million yuan will be used for the annual output of 6000 tons of VC and 3000 tons of FEC project, and 26.5 million yuan for the R & D center construction project.
Huasheng Lithium Power said that with the rapid growth of terminal demand such as new energy vehicles since the fourth quarter of 2020, the company's electrolyte additive products are in short supply, and the company's capacity utilization continues to improve. The company will expand the production capacity of VC and FEC products through the construction of fund-raising projects. after the completion of the project, it can increase the annual output of VC products by 6000 tons and FEC products by 3000 tons, which is more than the existing production capacity.
While the products are in short supply, the price of electrolyte additives has also risen sharply. In the second half of 2021, the average unit price of Huasheng Lithium VC and FEC products still increased significantly compared with the first half of the year. The average unit price of VC products was close to 260000 yuan / ton, an increase of more than 60% over the first half of the year. The average unit price of FEC products exceeded 100% per ton, and the average unit price of FEC products increased by more than 100% over the first half of the year.
With both volume and price rising, Huasheng Lithium Power's performance also maintained high growth. The company expects operating income of 930 million yuan to 990 million yuan in 2021, an increase of 109.14% to 122.64% over the same period last year. The net profit after deducting non-return is 337 million yuan to 386 million yuan, up 410.02% to 484.29% over the same period last year.
According to public data, the proportion of VC, the main product of Huasheng lithium electricity, is generally about 1% Mel 3% in the electrolyte, of which the proportion added in the electrolyte of ternary battery is 1% Mel 2%, while in the electrolyte formula of lithium iron phosphate battery, the proportion of VC will be even higher, generally 3%. 5%.
In recent years, due to the product performance and cost advantages of lithium iron phosphate battery have become increasingly prominent, its shipments have increased significantly. According to data released by the China Automotive Power Battery Industry Innovation Alliance, in January 2022, the total number of power batteries installed in China totaled 16.2 GWH, up 86.9 percent from the same period last year. Among them, the loading volume of ternary battery and lithium iron phosphate battery was 7.3GWh and 8.9GWhh respectively, up 35.2% and 172.7% respectively from the same period last year.
The substantial increase in the loading capacity of lithium iron phosphate batteries has also boosted the demand for materials such as electrolytes and their additives.
The White Paper on the Development of Lithium Ion Battery electrolyte Additives Industry in China (2021) jointly issued by EVTank, Ivy Economic Research Institute and China Battery Industry Research Institute predicts that driven by the growth of downstream electrolytes, the total shipment of electrolyte additives in the Chinese market is expected to reach 26690 tons in 2021; by 2025, the total shipment of electrolyte additives in the Chinese market will reach 77950 tons.
Huasheng Lithium has accumulated rich customer resources after years of precipitation in the field of electrolyte additives for lithium batteries. The company has long supplied additives to well-known manufacturers of lithium battery industry chain at home and abroad, including BYD, Tianci Materials, Guotai Huarong, Shanshan shares and other domestic manufacturers, as well as overseas manufacturers such as Mitsubishi Chemicals. The products have covered Asia, Europe, America and other electrolyte additive markets.
Battery Network noted that Huasheng Lithium Power has received long-term orders from a number of listed companies:
According to the cooperation agreement signed between Huasheng Lithium Power and Ningde Times in August 2021, lithium battery manufacturer Ningde Times will purchase VC products directly from the company. The agreed supply is: 400 tons / year in 2021, 1120 tons / year in 2022, and 3360 tons / year from 2023 to 2025.
In September 2021, BYD also signed a long-term cooperation agreement with Huasheng Lithium to purchase VC and FEC products. According to the agreement, the supply of VC is 240t / an in 2021, 800t / year in 2022 and 3120 t / a from 2023 to 2025. The FEC supply is 40t / an in 2021, 160t / an in 2022 and 600t / a from 2023 to 2025.
In September of the same year, Tianci material, a producer of electrolyte, also signed a long-term cooperation agreement with Huasheng Lithium Power to purchase FEC products with a supply of 200t / an in 2021, 660t / an in 2022 and 960t / a from 2023 to 2024.
Huasheng Lithium Power said that in the field of VC and FEC, the company will continue to invest more in research and development of related manufacturing technologies, improve production efficiency, reduce production costs, improve product quality, and consolidate the dominant position of superior products in the market. In the field of new additives, through cooperation with Sanmei and other partners, the company will increase the research and development and industrialization of new lithium salts such as LiFSI, enrich the company's core technology and product system, and continue to increase technological innovation.
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