After signing a number of long orders of lithium hexafluorophosphate, polyfluorodo plans to increase capital by no more than 5.5 billion to expand production.

On the evening of November 24th, Polyfluoroduo (002407) announced that it was proposed to raise no more than 5.5 billion yuan for the annual production of 100000 tons of new electrolyte lithium salt project and supplementary working capital.

Specifically, the total investment of the new electrolyte lithium salt project with an annual output of 100000 tons is 5.15 billion yuan, and it is proposed to use the raised funds to invest 4.4 billion yuan. The construction period is 3.25 years, the financial internal rate of return is 38.68%, and the investment payback period is 6.5 years. The project will be built in three phases and will form an annual production line with an annual output of 80,000 tons of lithium hexafluorophosphate, 10,000 tons of lithium difluorosulfonimide and 10,000 tons of lithium difluorophosphate.

Polyfluoromulti-analysis said that lithium electrolyte is the core component of the electrolyte, lithium hexafluorophosphate has good electrical conductivity and electrochemical stability, is currently the most widely used electrolyte lithium salt, accounting for 30% of the cost of the electrolyte. 50%. Although the research and development of new lithium salts such as difluorosulfonimide lithium is promoted, its production cost is much higher than that of lithium hexafluorophosphate, the current price is nearly 500000 yuan / ton, and its economic applicability is weaker than that of lithium hexafluorophosphate. Lithium hexafluorophosphate is still irreplaceable.

The price of lithium hexafluorophosphate has a certain periodicity, and the price of lithium hexafluorophosphate has experienced a sharp decline due to the mismatch between supply and demand along with the sharp release of new production capacity in 2017 and the decline in the growth rate of terminal demand. After the fierce competition in the early stage, the low-end backward production capacity in the trough period has been eliminated, the industry concentration has gradually increased, the scale effect amplifies the profit advantage of leading enterprises, and the cyclical price fluctuation of lithium hexafluorophosphate will give way to growth in the future.

However, with the gradual maturity of the domestic synthesis process and the successful research and development of the new technology route, the production cost began to drop significantly, creating conditions for the commercial use of new lithium salts. Under the demand environment of high energy density and high safety of power battery, the competitiveness of lithium difluorosulfonimide will be reflected and officially ushered in the opportunity for development.

In addition, additives are the core of the electrolyte, which have a significant impact on the wettability, flame retardancy and film-forming properties of the electrolyte. With the progress of battery technology, the requirements of additives are also increased. As a new electrolyte additive, lithium difluorophosphate can significantly improve the high temperature cycle performance and low temperature output characteristics of the battery, and has a broad market prospect.

In terms of market demand, EVTank, a research institution, predicts that China's electrolyte shipments will reach 458000 tons in 2021 and 1.357 million tons by 2025.

According to the relevant forecast of the Research Department of CICC, the global demand for electrolyte is expected to reach 2.616 million tons in 2025, with an average annual growth rate of about 46.47%.

At present, among the four main materials of lithium battery, the electrolyte link is the most scarce at present. Since the second half of 2020, thanks to the resonant growth of global new energy vehicles, the demand for lithium hexafluorophosphate has increased rapidly. With the rapid increase in demand, the effective production capacity of lithium hexafluorophosphate has not been improved, the supply exceeds the demand, and the price has risen all the way to 465000 yuan / ton in October 2021.

As a leading enterprise in lithium hexafluorophosphate and electrolyte-related lithium salt industry, polyfluoroduo will have a broad market growth space.

According to the research report released by Guohai Securities, polyfluorine is the leading enterprise in the field of lithium hexafluorophosphate, and the company currently has a capacity of 15000 tons of lithium hexafluorophosphate. The production capacity of 15000 tons of Jiaozuo plant and the 5000 tons of capacity built in cooperation with Yuntianhua are expected to be put into production next year. Yangquan 20, 000-ton project will start construction in October 2021, and the first phase of construction is expected to be completed by the end of 2022. It is estimated that the company's lithium hexafluorophosphate production capacity will reach 45000 tons by the end of 2022. In addition, the company announced in July 2021 that it intends to use self-raised funds to invest in the construction of 100000 tons of lithium hexafluorophosphate and 40, 000 tons of lithium difluorosulfonimide (LiFSI) and 10, 000 tons of lithium difluorophosphate, with a total investment of 5.15 billion yuan. After the completion of the project, the production capacity of lithium hexafluorophosphate will be greatly increased, which can effectively meet the future market demand of lithium-ion battery materials and strengthen the company's core competitive advantage.

With the production capacity release of the new lithium salt, the polyfluorine and multi-scale effect will be more obvious, and we will strive to open a larger gap with our competitors in terms of capacity scale, cost efficiency and technical capability, and continue to take the lead in the process of penetration and improvement of the new lithium salt.

At the same time of the substantial expansion of production capacity, since the second half of this year, Polyfluoroduo has successively signed long orders with a number of battery companies to ensure the sustained growth of the company's performance:

The company recently signed three product sales contracts with customers, and the supply of lithium hexafluorophosphate will not be less than 9960 tons. Specifically, the company signed a "long-term cooperation agreement" with BYD, which purchased lithium hexafluorophosphate with a total quantity of not less than 6460 tons; the company signed a "sales contract" with Funeng Technology, which purchased lithium hexafluorophosphate with a total quantity of not less than 1700 tons from the company; and Henan Nonferrous Metals Industry Co., Ltd., a subsidiary of the company, and EnchemCo.,Ltd.. Signed the purchase Agreement, EnchemCo.,Ltd. Purchase 1800 tons of lithium hexafluorophosphate from Henan Nonferrous.

The company's subsidiary Henan Nonferrous Metals Industry Co., Ltd. (hereinafter referred to as "Henan Nonferrous Metals") recently signed a major contract announcement for daily operation. (referred to as "Henan Nonferrous Metals") and EnchemCo.,Ltd. Signed the purchase Agreement, EnchemCo.,Ltd. It is planned to purchase lithium hexafluorophosphate products with a total amount of not less than 1 billion yuan from Henan Nonferrous in the next three years.

The company recently signed a "strategic cooperation agreement" with BYD, which plans to purchase lithium hexafluorophosphate products with a total quantity of not less than 56050 tons from the company within the validity period of the cooperation agreement, the company announced on November 15.