Dow Technology plans to further integrate carbon material assets to expand the production scale of Conductive Agent for Lithium Battery

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On the evening of December 21st, Dow Technology (300409) announced that the company intends to further implement the integration of carbon material assets, expand the production scale of conductive agent, and further improve the complete supply chain and R & D system of conductive agent, including catalyst, carbon nanotube powder, high purity powder, conductive paste, NMP recovery and so on. Specifically, Foshan Dow plans to increase the cash capital of Griffin by 200 million yuan, Griffin plans to transfer 52.47 million yuan to Jiangmen Dow New Energy Materials Co., Ltd., and Griffin plans to transfer 100% equity interest in Ganzhou Haoxin New Energy Co., Ltd. held by Foshan Dow with 20.98 million yuan.

Dow Technology said that as Griffin, Jiangmen Dow and Ganzhou Haoxin are all subsidiaries within the scope of the company's consolidated statements, the company is the ultimate controlling party, and this transaction is a business merger under the same control. in addition to the evaluation and formalities fees arising from this transaction, it has no impact on the company's current profit or loss.

In recent years, with the rapid development of new energy vehicle industry, the demand for power battery will increase rapidly. as the key auxiliary material of lithium battery, lithium battery conductive agent will also enter a stage of rapid development.

According to Anxin Securities, the global demand for carbon nanotube slurry for lithium batteries is 104000 tons in 2021, an increase of 74 percent over the same period last year. In 2025, the global demand for carbon nanotube slurry for lithium batteries is 580000 tons, with a five-year compound growth rate of 58 percent.

In July, 2021, Dow Technology formulated a five-year (2021-2025) development strategic plan for the three major business sectors: lithium materials, carbon materials and ceramic materials. among them, the goal of the carbon materials business sector is to reach the international first-class level in the R & D and manufacture of products such as graphene and carbon nanotube conductive agents.

In the first half of the year, Dow Technology used Griffin as the carbon materials business integration platform, integrated the carbon material conductive agent business, changed Qingdao Haoxin into a wholly-owned subsidiary of Griffin, and the operating performance of the carbon materials business plate increased significantly. Initially showing a good integration effect.

The further implementation of carbon material asset integration, in the future, Griffin will strengthen the market demand orientation, actively expand external market orders, accelerate the development of the company, and seize the opportunity of the rise of new energy vehicles.

In addition, in terms of mineral resources security, Dow technology has also been making continuous efforts recently.

In order to further promote the strategic layout of the new energy industry chain, Guangdong Jiana Energy Technology Co., Ltd., a wholly-owned subsidiary of the new energy industry chain, has invested and set up PT.JIANA ENERGY RESOURCES in Indonesia, which is engaged in large-scale trade in nickel ore products and ores, Dow Technology announced on December 14.

According to Dow Technology, Indonesia is one of the countries with the richest laterite nickel resources in the world, and the ultimate goal of setting up PT.JIANA ENERGY in Indonesia is to provide reliable nickel resources for the development of the company's lithium materials business, access and further optimize the company's raw material supply, thereby reducing the raw material costs of the company's high-nickel ternary precursor products and enhancing the company's core competitiveness.

On October 16th, Dow Technology announced that MJM, a wholly-owned subsidiary, intends to increase its capital to MMT by 400 million yuan. After the completion of the capital increase, MJM's shareholding in MMT has increased from 45% to 87.23%.

Data show that MMT is located in the Democratic Republic of the Congo (DRC) in Africa, mainly engaged in the production and sales of cobalt, electrolytic copper and other cobalt ore-related products. The Democratic Republic of the Congo (DRC) is rich in natural resources, and the reserves of non-ferrous metals occupy an important position in the world. it is the most important rich area of copper and cobalt resources in the world. The Katanga copper belt with Koluvezi, Likassi and Lubumbashi as the center has large copper and cobalt reserves.