On the evening of February 8th, Taihe Science and Technology (300801) announced that the company intends to invest 204.5 million yuan to build an annual production capacity of 20, 000 tons of VC (vinyl carbonate) project, which is divided into two phases, the first phase and the second phase respectively build an annual output of 10, 000 tons of VC project, of which the first phase of the project investment of 109.5 million yuan, the second phase of the project investment of 95 million yuan.
In terms of construction progress, the first phase of the project is planned to be organized and implemented in February 2022, with a construction period of eight months, and is scheduled to be completed by the end of October 2022. The construction time of the second phase of the project will be adjusted according to the market expansion of the first phase of the project.
Taihe Technology said that VC products and the company's main products water treatment chemicals both belong to the chemical industry fine chemical industry, with high technology relevance, the company has done a good job to enter the field of VC related personnel and technology reserves. This investment is in line with the company's future development strategic planning, will help to promote the company's layout in the new energy industry, promote the rapid development of the new energy industry, and create new profit growth points for the company.
According to the announcement, according to the 100% production rate and sales rate, the annual operating income of the project is expected to be 2.478 billion yuan and the annual net profit is 185 million yuan. The sales income of the product is calculated according to the VC price of 140000 yuan / ton (including tax), the yield and the production and marketing rate are both 100%. At present, the market price of VC is about 300000 yuan / ton (including tax). According to the existing production capacity on the market and the new capacity planning of other companies in the industry, the new capacity is mainly released in 2023. It is expected that the supply of VC will increase significantly in 2023, and the product price will fall somewhat. After reaching full production, the VC price is estimated according to 140000 yuan / ton (including tax).
Taihe Technology said in the announcement that with the continuous expansion of the scale of downstream industries such as lithium battery industry and new energy vehicles, as well as the improvement of safety, cycle life and energy density requirements of lithium batteries, more requirements have been put forward for electrolyte additives, and the demand for additives such as film forming, conductive, flame retardant, overcharge protection and improving low temperature performance will gradually increase.
As the core raw material to improve the performance of battery electrolyte, additives can effectively restrain the decomposition of electrolyte and improve its service life. At present, VC is the largest conventional additive in the electrolyte, which can form a SEI film with compact structure and better performance in the negative electrode, reduce the battery impedance and improve the low temperature performance of the electrolyte, which can improve the capacity and cycle life of the battery. In addition, the proportion of VC added to lithium iron phosphate battery is higher than that of ternary battery, and the continuous warming of market demand for lithium iron phosphate battery will also stimulate the demand growth of VC in the future. At present, there are few domestic enterprises involved in VC production, mainly in the hands of a few enterprises, and there is a large gap in the whole VC industry.
According to the White Paper on the Development of Lithium Ion Battery electrolyte Additives Industry in China (2021) jointly released by EVTank, Ivy Economic Research Institute and China Battery Industry Research Institute, the shipment of electrolyte additives in the Chinese market reached 16140 tons in 2020, an increase of 40.8 percent over the same period last year. Among them, VC and FEC, as the most commonly used additives, have the highest shipments, with VC shipments of 6800 tons and FEC shipments of 35 million tons, accounting for 63.8% of the electrolyte additive market.
The White Paper estimates that China's electrolyte shipments will reach 458000 tons in 2021 and 1.357 million tons by 2025. Driven by the growth of downstream electrolytes, it is estimated that the total shipment of electrolyte additives in the Chinese market will reach 26690 tons in 2021 and 77950 tons by 2025.
In addition to electrolyte additives, Taihe Technology has also laid out the business of lithium iron phosphate in the field of new energy. In October 2021, Taihe Science and Technology announced that it intends to set up a wholly-owned subsidiary and build a project with an annual output of 10,000 tons of lithium iron phosphate high-end cathode materials, with a total investment of 118 million yuan.
In the new energy lithium battery industry chain, lithium iron phosphate, the cathode material, belongs to a branch of the fine chemical industry in the chemical industry, and the water treatment agent also belongs to a branch of the fine chemical industry in the chemical industry, Taihe Science and Technology said in a survey conducted by the reception agency on January 27. For companies, technology relevance is high. For the sustainable development of the company, it is appropriate to choose this relatively large development space and good growth products as the company's new development direction, which can provide enough development space for the company's sustainable growth in the future. At present, the production scale of 10,000 tons of lithium iron phosphate is an experimental and exploratory investment.
