Ganfeng Lithium and Fulin Precision Machining to Jointly Construct a Lithium Dihydrogen Phosphate Project with the Annual Capacity of 200,000 mt

SHANGHAI, Sep 2 (SMM) - Recently, Ganfeng Lithium and Fulin Precision Machining signed a Strategic Cooperation Agreement. The two parties will establish a comprehensive strategic partnership in the upstream and downstream of the new energy industry, and carry out in-depth cooperation in four aspects, namely, the supply of lithium salt products, the supply of LFP cathode materials, industrial investment and project operation, and research and development of new lithium salts, to achieve complementary advantages.

According to the agreement, Ganfeng Lithium and Fulin Precision Machining intend to set up a joint venture company. The two parties will invest 40 million yuan and 60 million yuan respectively, accounting for 40% and 60% of the equity of the joint venture company. They will use the joint venture company as the main body to invest in the construction of a lithium dihydrogen phosphate integrated project. The technical path is to directly prepare lithium dihydrogen phosphate through lithium sulphate, and the long-term plan is 200,000 mt, of which the production capacity in phase I is 30,000 mt/year. In the later stage, the new company will further expand the production scale according to the market demand.

In addition, the agreement also stipulates the supply and sales of the above-mentioned lithium dihydrogen phosphate. Ganfeng Lithium is responsible for providing technical guidance for the production of lithium dihydrogen phosphate of the joint venture company and supplying sufficient qualified lithium sulphate products to meet the production, while Fulin Precision Machining or its designated party will purchase all the lithium dihydrogen phosphate products of the joint venture company.

It is reported that lithium dihydrogen phosphate is one of the important raw materials for the preparation of LFP through the ferrous oxalate process of Jiangxi Shenghua, and this is not the first time that Fulin Precision Machining makes an industrial layout of lithium dihydrogen phosphate. In September 2021, Fulin Precision Machining and Guizhou Chanhen signed the Strategic Cooperation Agreement. In addition to close cooperation in phosphate ore, phosphorus source, and LFP cathode materials, the two sides also planned to jointly fund the construction of a lithium dihydrogen phosphate project.

Ganfeng Lithium said that this cooperation aims to give full play to the resource advantages of both parties in technology, finance, raw materials, and market channels, and realise resource sharing, which will help promote their rapid development and the overall improvement of their business.