Longyi Technology: it is proposed to set up a joint venture with Xin Yangfeng to build a 50,000 t / an iron phosphate project.

SMM August 17: on August 17, Longyi Technology announced that its holding subsidiary Changzhou Liyuan New Energy Technology Co., Ltd. plans to jointly invest 200 million yuan with Xinyangfeng Agricultural Technology Co., Ltd. to establish a joint venture Hubei Fengli New Energy Technology Co., Ltd. (tentative name). Among them, Changzhou Liyuan, a subsidiary of Longyi Technology, contributed 80 million yuan, accounting for 40% of the equity in the joint venture company.

It is reported that after the establishment of the joint venture company, it will invest in the construction of a project with an annual production capacity of 50,000 tons of iron phosphate. As for whether to continue to increase the scale of production capacity and the amount of investment after the completion of the project, the two sides will decide separately according to the actual production and operation of the company in the future.

It is reported that the first phase of the annual production capacity of 50,000 tons of iron phosphate project is expected to invest 300 million yuan, but the specific amount of investment should still be based on the actual amount.

It is worth mentioning that with the increasing popularity of the lithium electricity industry, the demand for lithium iron phosphate continues to rise, and iron phosphate, as an important part of lithium iron phosphate, has been in short supply. According to SMM recent research shows that iron phosphate industry inventory is still low, supply is tight, prices will remain high.