8.2 Billion Yuan! Binhai Energy's Integrated Project with An Annual Output of 200,000 mt of Anode Materials Welcomes New Developments

On the evening of May 27, Binhai Energy (000695) announced that its subsidiary, Inner Mongolia Xiangfu New Energy Co., Ltd., plans to commence construction of the 50,000 mt front-end of its 200,000 mt integrated anode materials project. It intends to sign a general contracting agreement for the 50,000 mt front-end project with Hebei Shanghe Construction Engineering Co., Ltd., with an estimated contract price of 500 million yuan (including tax).

According to a previous announcement by Binhai Energy, the project is located in the Shangdu Industrial Park of the Huitengxile Green Economic Development Zone in Ulanqab, Inner Mongolia. The total investment is expected to be 8.2 billion yuan, and it will be constructed in two phases, each with a capacity of 100,000 mt. The construction period for the first phase is planned to be 24 months, while the second phase is planned to be 20 months.

It is reported that Binhai Energy acquired 100% equity of Xiangfu New Energy in May 2023, starting its strategic layout in the new energy materials industry. The company is constructing a 100,000 mt lithium battery anode materials project, with a 40,000 mt end-product line having started trial production by the end of July of the same year.

According to the plan of Binhai Energy, the company aims to achieve a capacity release of 100,000 mt by the end of 2024. The 200,000 mt integrated project will be constructed in phases and put into operation in stages, with an expected capacity release by the end of 2025.

In terms of the market, the "White Paper on the Development of the Global Anode Materials Industry (2024)" jointly released by the research institutions EVTank, Ivy Economic Research Institute, and China Battery Industry Research Institute shows that in 2023, the global shipment of anode materials reached 1.818 million mt, an increase of 16.8% YoY. Among them, China's shipment of anode materials reached 1.711 million mt, further increasing its global share to 94.1%.

Looking ahead, EVTank expects global shipments of anode materials to exceed 8 million mt by 2030. In the short term, EVTank states that 2024 will be a year of concentrated release of newly built graphite and anode materials capacity nationwide over the past two years, and the entire industry will face significant overcapacity pressure, with the price of anode materials still facing considerable downward pressure. On the other hand, with the completion of a large amount of integrated capacity, third-party independent graphite processing capacity will face significant operational pressure.