Zhongwei Co., Ltd. plans to invest 10 billion yuan to build an integrated project of an annual production line of 200000 tons of iron phosphate and lithium iron phosphate.

300919.SZ announced that the company will hold the 24th meeting of the first Board of Directors and the 13th meeting of the first Board of Supervisors on December 9, 2021 to consider and pass the "proposal on signing an Investment Agreement with the people's Government of Kaiyang County".

According to the Investment Agreement, the total investment of the project is about 10 billion yuan (including investment in fixed assets and working capital, and the final investment amount is based on the actual investment of the project), covers an area of about 1200 mu, is developed by stages, and the construction period is 33 months. finally, the actual construction situation of the project shall prevail. It is proposed to build an integrated project with an annual output of 200000 tons of iron phosphate and lithium iron phosphate material production line, while supporting the construction of phosphate rock to produce phosphoric acid or yellow phosphorus and monoammonium phosphate within the scope of the chemical park, as well as supporting mining areas and phosphate rock mining to match the demand for 200000 tons of lithium iron phosphate products. The production capacity of basic raw materials such as phosphoric acid, yellow phosphorus and monoammonium phosphate from phosphate rock shall be subject to the results of examination and approval by the superior.

The company's products are a full range of ternary precursors, high-voltage cobalt tetroxide, binary and multicomponent precursors, etc., according to the (GGII) data of the Institute of Lithium and electricity Research, the company's ternary precursor shipments increased to 21.8% in China in 2020, and cobalt tetroxide in China's market share increased to 23.7%, ranking first in the industry.

The project will focus on the layout of downstream ferric phosphate and lithium ferric phosphate from phosphate rock to phosphoric acid production line. After the project is fully put into production, the large-scale efficiency of the company will be further enhanced, and its competitiveness in the fields of ternary precursors, cobalt tetroxide, lithium iron phosphate and other materials will be more consolidated, and the company's position as a leading enterprise in the field of lithium materials will be further stabilized.