Chinese Titanium Dioxide Giant to Build a 200,000 mt/year Lithium-Ion Battery Anode Material Project

SHANGHAI, Nov 30 (SMM) – LB Group held a meeting on November 29 to deliberate and approve the "Proposal on the Investment and Construction of an Integrated Project of 200,000 mt of Lithium-ion Battery Anode Materials".

The proposal mentioned that LB Group’s subsidiary Henan Baili New Energy Materials Co., Ltd. plans to invest in the construction of an integrated project with an annual output of 200,000 mt of lithium-ion battery anode materials.

It is reported that the total investment of the project is 3.5 billion yuan. The project is divided into three phases. A production line of graphite anode material for lithium-ion batteries with an annual output of 50,000 mt will be built in phase I and II, and a graphite anode material production line with an annual output of 100,000 mt will be built in phase III.

Stimulated by this news, LB Group's share price gapped and opened high this morning, and once rose more than 6.7% to 28.71 yuan per share.

LB Group said that as a key product in the three major industries of new energy, new materials and new energy vehicles, the demand of lithium-ion batteries is gradually expanding.

As one of the four key main materials of lithium-ion batteries, the anode material is an indispensable part in the lithium-ion industry chain.

Because of its low cost and excellent comprehensive performance, the application of graphite anode materials in lithium-ion battery industry has increased year by year. And the prices have risen significantly from previous years.

The average spot price of SMM artificial graphite (high-end) was 75,500 yuan/mt as of November 30, an increase of 8,000 yuan/mt or 11.85% from the beginning of 2021.

According to a recent survey by SMM, the current prices of the anode materials have shown an upward trend. As for raw materials, the prices of low-sulphur petroleum coke and coal tar pitch have fallen, and the prices of needle coke remain flat. The graphitisation processing fees are still at a high level, and production capacity and shipments are insufficient due to winter environmental protection and other reasons. The supply remains tight, while the demand is high, and the expansion of raw material production will take time. The anode material prices are expected to rise this week.