The first phase of the positive and negative material project has the conditions to be put into production. Longbai Group accelerates its integration into the lithium power supply chain.

On March 21, Longbai Group (002601) announced that Henan China carbon New material Technology Co., Ltd., a wholly-owned subsidiary, intends to invest in the construction of an annual output of 100000 tons of artificial graphite anode materials for lithium-ion batteries. The first phase of the project (annual output of 25000 tons) production line has passed many stage-by-stage equipment debugging and commissioning with materials in the pilot production stage, and the product quality has passed the inspection and obtained the qualification approval of some downstream customers. At present, it has the conditions to put into production.

According to the announcement, in February 2022, the production line of the first phase (annual output of 25000 tons) of China carbon new materials with an annual output of 100000 tons of artificial graphite anode materials for lithium-ion batteries has entered the stage of trial production.

The Battery Network noted that in addition to the first phase of the above project, Henan Longbai New material Technology Co., Ltd., a wholly-owned subsidiary of Longbai Group, launched the first phase of the lithium-ion battery material industrialization project with an annual output of 200000 tons (50, 000 tons per year). The production line also entered the trial production stage in February 2022. On March 17, the company announced that the first phase of the project (annual production capacity of 50,000 tons) production line has passed many stage-by-stage equipment commissioning and commissioning with materials in the trial production stage, and the product quality has passed the inspection and obtained the qualification approval of some downstream customers. At present, it has the conditions to be put into production.

Longbai Group said that the formal commissioning of the above project will help the company to form a more complete industrial system of new lithium materials and lay the foundation for the company to develop and produce positive and negative materials for new energy batteries.

Xu Gang, party committee secretary and chairman of Longbai Group, said in a research activity on March 15 that Longbai Group, as the industry leader, has entered the lithium power new energy materials industry since 2021 and regarded it as an important industry planned by the group during the 14th five-year Plan period. the main products of the plan are iron phosphate, lithium iron phosphate, graphite negative electrode, and so on. The company will rely on the coupling advantages with the titanium industry chain and the concept of large chemical industry to create distinctive industrial characteristics. The lithium power new energy materials industry with outstanding competitiveness has built lithium iron phosphate projects with an annual output of 200000 tons, graphite negative electrode projects with an annual capacity of 100000 tons and iron phosphate projects with an annual capacity of 200000 tons in Qinyang, Boai and Zhongzhan respectively.

According to the Guohai Securities Research report, with the gradual landing of the planned production capacity, Longbai Group will have the production capacity of high value-added lithium iron phosphate and artificial graphite negative electrode, which will help the company to form a more complete industrial system and actively promote the company's integration into the new energy material production and manufacturing supply chain.

In terms of downstream customers, on March 13, Longbai Group said on the investor interactive platform that it had contacted and sent samples for testing with mainstream manufacturers in the new energy battery industry, and at the same time signed strategic cooperation agreements with some manufacturers and reached cooperation intentions, which could be sold to customers after testing and verification and the project was officially put into production.

It is worth noting that on March 7, Longbai Group announced that recently, the company and Jie Wei Power signed a "Strategic Cooperation Framework Agreement." According to the agreement, Jie Wei Power plans to purchase lithium positive and negative electrode materials from Longbai Group from 2022 to 2024, and the annual purchase quantity of the two materials is planned to be no less than 50% of the amount used in the relevant projects of the company. Longbai Group gives a certain price discount.