On September 3, Yuntu Holdings (002539.SZ) announced that the company plans to invest 500 million yuan in its own currency to set up a wholly-owned subsidiary Yuntu New Energy in Songzi City, Hubei Province.
Yuntu Holdings will invest in the construction of 350000 tons of battery-grade ferric phosphate and 300000 tons of wet-process phosphoric acid (converted purity), 300000 tons of refined phosphoric acid, 1.5 million tons of phosphate mineral processing, 1 million tons of sulfur sulphuric acid, 600000 tons of slow and controlled release compound fertilizer, 1 million tons of phosphogypsum comprehensive utilization and 20MW waste heat power generation projects.
The total investment of the project is 4.595 billion yuan, including 4.095 billion yuan in fixed assets and 500 million yuan in working capital.
The project is divided into two phases, the first phase is 100000 tons / year of iron phosphate, which is expected to be completed and put into operation in March 2023; the second phase of 250000 tons of iron phosphate and supporting 300000 tons of wet-process phosphoric acid (converted purity), 300000 tons of refined phosphoric acid, 1.5 million tons of phosphate mineral processing, 1 million tons of sulfur sulphuric acid, 600000 tons of slow and controlled release compound fertilizer, 1 million tons of phosphogypsum comprehensive utilization and 20MW waste heat power generation project is expected to be completed and put into operation in December 2023.
The announcement pointed out that the state pays close attention to the development of new energy technologies and new energy vehicles, and the power demand of new energy vehicles and the demand for energy storage in electricity and communications are growing explosively, driving the rapid growth of the demand for power batteries. Lithium iron phosphate cathode material is generally favored by the market because of its safety, large capacity, discharge, fast charging and low cost, and has become an important development direction of cathode materials for power batteries.
At the same time, China is rich in phosphorus, iron and lithium mineral resources, which provides favorable conditions for the rapid growth of lithium iron phosphate. According to the data, the cumulative output of domestic lithium iron phosphate batteries from January to June 2021 was 37.7GWH, an increase of 334.4% over the same period last year, accounting for 50.5% of the total output. As the key and core precursor raw material for the manufacture of battery-grade lithium iron phosphate, iron phosphate is bound to meet the explosive growth demand on the premise of the increasing demand for lithium iron phosphate materials. at present, iron phosphate is in short supply and there is a large gap in production capacity. the market prospect of iron phosphate products in the future is very broad.
Yuntu Holdings owns rich phosphate rock resources in Niuniuzhai North Mining area of Leibo County (among which the proved resources are about 181 million tons) and perfect supporting facilities. At the same time, Yuntu Holdings has established a complete phosphate fertilizer industry chain and a phosphorus chemical industry chain based on yellow phosphorus, building an integrated industrial chain advantage, which can not only provide stable and reliable raw material guarantee for the project, but also effectively control the project product cost.
Yuntu Holdings said that this investment will help to incubate new profit growth points for the company, and at the same time help to expand the scale of the company's compound fertilizer and phosphorus chemical industry, which is in line with the company's long-term development strategy of continuing to become bigger and stronger.
