Jiangxi sublimation plans to introduce Ningde era and other war projects to increase the production of 50,000 tons of lithium iron phosphate.

On the evening of March 16th, Fulin Seiko (300432) announced that in order to give full play to and integrate the resource advantages of all parties and realize in-depth cooperation and industrial layout in the field of new energy lithium cathode materials, the company and Ningde Times, Changjiang Morning Road to the company's wholly-owned subsidiary Jiangxi sublimation New Materials Co., Ltd. (hereinafter referred to as "Jiangxi sublimation") to increase capital.

Among them, Fulin Seiko subscribed for 272 million yuan of increased registered capital of Jiangxi sublimation, 20 million yuan of registered capital of Jiangxi sublimation in Ningde era, 44 million yuan of registered capital of Jiangxi sublimation in Ningde era, and 164 million yuan of registered capital of Jiangxi sublimation in Changjiang Morning Road.

After the completion of this capital increase, Jiangxi sublimation's registered capital will increase to 720 million yuan, the company will hold 68.33% stake in Jiangxi sublimation, Ningde Times and its appointees will hold a total of 8.89% stake in Jiangxi sublimation, Changjiang Morning Road will hold 22.78% stake in Jiangxi sublimation, and Jiangxi sublimation will become a controlling subsidiary of the company.

The announcement shows that the new production capacity (50,000 tons of lithium iron phosphate expansion project) based on the funds obtained from this capital increase should be given priority to supply the Ningde era and its designated main body, and independently carry out external sales business on the premise of ensuring the demand of the Ningde era.

In addition, Jiangxi sublimation Company will consider building lithium iron phosphate plants in the form of joint ventures and cooperation in the future, and Ningde Times will enjoy the right to give priority to cooperation with target companies in respect of these joint ventures and cooperation.

Battery Network noted that in January this year, Fulin Seiko announced that the company's subsidiary Jiangxi sublimation had agreed to invest in the construction of an annual output of 50,000 tons of new energy lithium cathode materials in Shehong West International Technical Cooperation Industrial Park, with an estimated total investment of 600 million yuan. It is reported that the project is mainly to build a new lithium iron phosphate cathode material production workshop, R & D center, testing center, exhibition hall, warehouse and so on. At present, the construction of the project has been officially launched, and the production capacity of 50,000 tons is expected to be formed by the end of December this year.

According to Chuancai Securities, by 2022, the demand of lithium iron phosphate in wind-photovoltaic grid-connected energy storage system, 5G base station UPS and electric vehicles will reach 31GWhhand 21GWhhand 100GWh. the total global demand for lithium iron phosphate will reach 152GWh. the market space will exceed 1 trillion yuan. The compaction density and gram capacity of Fulin Seiko lithium iron phosphate products are the leading level in the industry with excellent quality. In deep cooperation with Ningde Times, the company currently has a production capacity of 12000 tons of iron and lithium, with a new production capacity of 50, 000 tons in 2021 and an effective capacity of 2.2 / 62000 tons in 2021 / 2022, bringing a net profit of 0.55 / 155 million yuan for the company.