Expand the production of 30,000 tons of lithium hexafluorophosphate! Tianji shares are proposed to raise no more than 2.11 billion yuan.

On the evening of December 23, Skyline shares (002759) disclosed the pre-plan for a non-public offering of A shares in 2021, which intends to raise 2.11 billion to expand the production capacity of lithium hexafluorophosphate.

With the vigorous development of the new energy vehicle industry, power battery enterprises have entered a period of large-scale production expansion, which has also led to a rapid increase in the market demand for upstream electrolyte materials. Lithium hexafluorophosphate, as the core material of electrolyte, is facing a serious imbalance between supply and demand, and the product price is going up all the way. By the beginning of December 2021, the price of lithium hexafluorophosphate has risen from 95000 yuan / ton in November 2020 to about 550000 yuan / ton.

Tianji shares believe that although many enterprises in the market have accelerated the pace of production expansion, the investment intensity of lithium hexafluorophosphate project is high, the expansion cycle is long, and it will take at least two years to increase effective production capacity. It is expected that the supply of lithium hexafluorophosphate will still fall short of demand in the next two years. Based on this, the company issued a pre-plan for the non-public offering of A-shares in 2021, which intends to raise 2.11 billion yuan (including capital) from no more than 35 specific investors, and the number of shares issued this time does not exceed 121 million shares (including capital). The net funds raised after deducting the relevant issuance costs will be used for Jiangsu Terui Lianteng material Technology Co., Ltd. 30, 000 tons of lithium hexafluorophosphate, 6000 tons of high-purity LiF and other new electrolyte lithium salts and integrated supporting projects, as well as supplementary liquidity.

Specifically, the total investment of the above projects does not exceed 3 billion yuan, and it is planned to build a project with an annual output of 30, 000 tons of lithium hexafluorophosphate, 6000 tons of high purity LiF, 28000 tons of solid calcium fluoride, 17000 tons of potassium chloride aqueous solution and 313000 tons of hydrochloric acid (20%) and 23000 tons of hydrofluoric acid (30%). The project is located at No. 16 Haikang Road, New material Industrial Park, Changshu, Jiangsu Province. the main body of the project is Jiangsu Teri Lianteng material Technology Co., Ltd., which is scheduled to start in September 2022 and completed in April 2025.

It is reported that Jiangsu Terry Lianteng material Technology Co., Ltd., the main executive body of the project, is jointly funded by subsidiary Xintai Materials, Ruitai New Materials and Ningde New Energy, in which Xintai Materials holds 70%, Ruitai New Materials holds 25%, and Ningde New Energy holds 5%.

Data show that Xintai Materials, a wholly-owned subsidiary of Tianji Co., Ltd., currently has an annual production capacity of 8160 tons of lithium hexafluorophosphate, which is in the forefront of the industry. In addition, Jiangsu Taiji material Technology Co., Ltd., a subsidiary of the company, has an annual output of 10000 tons of lithium hexafluorophosphate and battery electrolyte additives and other products are scheduled to start trial production in the second quarter of next year. This fundraising project will further enhance the company's business and product scale.

The battery network noted that in addition to adding 30, 000 tons of lithium hexafluorophosphate, the battery network will also increase the annual production of 6000 tons of high-purity LiF and other materials. LiF is the main raw material for the production of lithium hexafluorophosphate. With the continuous expansion of Tianji shares, the consumption of upstream raw materials will continue to increase. The new production capacity of 6000 tons of LiF can help the company ensure the supply of raw materials through self-produced LiF and effectively reduce procurement costs.

Tianji shares said that after the project is put into production, it can greatly increase the production capacity of the company's lithium hexafluorophosphate, thus significantly enhance the company's ability to guarantee supply nationwide, seize market share, strengthen market competitiveness, enhance brand awareness, and further consolidate the company's leading position in the industry, which is conducive to the formation of scale barriers and improve the company's ability of sustainable development.

According to a previous research report released by China Merchants Securities, it is estimated that after this round of production expansion, the total capacity concentration of Tianzhi Materials, Polyfluorodo and Xintai Materials next year will be close to 70%, an increase of 15-20 percentage points over 2019-2020. If the actual shipments are taken into account, the share of the three enterprises will be higher, the industry pattern will be more orderly, and the industry advantages will be further concentrated to the leading enterprises.