On February 18th, Dow Technology (300409) announced that Guangdong Jiana Energy Technology Co., Ltd. (hereinafter referred to as "Guangdong Jiana"), a wholly owned subsidiary of the company, is one of the important manufacturers of cobalt salts and ternary precursors in China. The company plans to increase capital and shares in Guangdong Jiana by introducing strategic investors.
After negotiation, Ganzhou Development No. 3 New Energy Materials Industry Investment Fund Partnership (Limited Partnership) (hereinafter referred to as "Ganzhou No. 3 New Energy Materials Fund") and Ganzhou Development New Energy Materials Industry Investment Fund Partnership (Limited Partnership) (hereinafter referred to as "Ganzhou Wangzhao New Energy Materials Fund") will contribute with their own funds and increase capital to Guangdong Jiana by cash of 400 million yuan and 300 million yuan respectively. After the completion of the capital increase, Guangdong Jiana's registered capital will increase from 154.4755 million yuan to 166.4903 million yuan. Ganzhou No. 3 New Energy Materials Fund and Ganzhou Wanghao New Energy Materials Fund will hold 4.12% and 3.09% of Guangdong Jiana respectively.
After the above strategic investors increase their capital, Guangdong Jiana will raise another 300 million yuan, and a total of 1 billion yuan will be invested in Jiangxi Jiana Energy Technology Co., Ltd. (hereinafter referred to as "Jiangxi Jiana") for the construction and operation of Jiangxi Jiana project.
According to the data, the Jiangxi Jiana project specifically refers to the project of Jiangxi Jiana Energy Technology Co., Ltd., Fukang Industrial Park, Longnan Economic and technological Development Zone, Ganzhou City, Jiangxi Province. the project started in September 2021 with a total investment of 12.5 billion yuan. construction of 100000 tons of power battery cathode materials precursors, 20, 000 tons of metal cobalt salt products, 30, 000 tons of metal nickel salt products, 50, 000 tons of waste lithium battery recycling project, The project is expected to be completed and put into production by December 31, 2025.
With the expected rise in global electric vehicle sales leading to the expected increase in the demand for power batteries, according to China International Capital Corporation's calculation, as the main component of the cost of electric vehicles, the global demand for power batteries is expected to reach more than 1430GWh by 2025, and the global demand for ternary precursors is expected to reach 2.55 million tons in 2025, achieving an average annual compound growth rate of 43.4 percent compared with the actual global shipments of 420000 tons in 2020. The market demand will break out quickly.
As for the reasons for introducing WIC to increase capital and increase shares, Dow Technology explained that Guangdong Jiana is one of the early enterprises to realize large-scale production of ternary precursors in China, with profound product and technical precipitation. it has mastered many key core technologies in the field of high-end cobalt-nickel salts and ternary precursor manufacturing, excellent and stable product quality, advanced production process equipment and advanced technology, and is one of the important suppliers of cobalt products in China. In order to seize the opportunity of industry development and promote the realization of Dow's technology strategic planning and business objectives, the company has expanded or built a new lithium material production base in Yingde and Longnan to actively expand production, expand production capacity and enhance the company's competitiveness. The 700 million yuan of capital increase introduced into the war will be spent on the construction and operation of Jiangxi Jiana, which will greatly speed up the construction of Longnan production base, promote its early production and commissioning, and produce economic benefits as soon as possible.
In addition, it is worth noting that the two strategic investor managers introduced by Dow Technology this time are Ganzhou Development Investment Fund Management Co., Ltd., and the fund and its managers penetrate to the actual control of Ganzhou State-owned assets Supervision and Administration Commission.
With the active promotion of the development of the new energy industry in Jiangxi Province, the state-owned funds of Ganzhou have made a layout in the new energy industry. For example, the products managed by the Ganzhou Development Industrial guidance parent Fund (Limited Partnership) have invested in a number of new energy industry enterprises such as Funeng Technology (Ganzhou) Co., Ltd. And Ningbo Liwei Energy Storage system Co., Ltd., which have strong cooperation with Guangdong Jiana in business.
At the same time, Ganzhou Longnan's "2021 Government work report" also proposed that the construction of lithium power industrial parks and other parks will be accelerated to form a situation of industrial agglomeration in industrial segments. Centering on the extended chain and strong chain of the lithium industry, the upstream of the lithium industrial chain focuses on positive and negative materials, diaphragms, electrolytes, the middle reaches focuses on cell assembly and testing and battery packaging, and downstream focuses on consumer, low power and energy storage applications.
To sum up, after the capital increase of Ganzhou SASAF, it can not only enhance the financial strength of Guangdong Jiana, but also highlight its clustering effect on the lithium industry chain, and other enterprises in the lithium industrial park will also cooperate with Guangdong Jiana in business, which is conducive to the construction and development of Dow Technology in Ganzhou Longnan production base, and to further enhance the operating efficiency and market competitiveness of Jiangxi Jiana.
