Expand production of VC and FEC! Yongtai Science and Technology plans to invest 450 million yuan to build lithium battery electrolyte additive project.

On August 31st, Yongtai Technology (002326) issued an announcement that the 19th meeting of the Fifth Board of Directors of the company examined and passed the "Bill on projects with an annual output of 25000 tons of VC and 5000 tons of FEC in Inner Mongolia Yongtai", and agreed that Inner Mongolia Yongtai Chemical Co., Ltd. (hereinafter referred to as "Inner Mongolia Yongtai"), a wholly owned subsidiary of the company, should use self-raised funds to invest in the construction of projects with an annual production capacity of 25000 tons of VC and 5000 tons of FEC.

The announcement shows that the total investment of the project is 450 million yuan, of which the construction investment is 412 million yuan and the bottom liquidity is 30.005 million yuan. the company can, according to the actual implementation of the project, within the scope of the total investment quota, make appropriate adjustments to the specific investment contents and cost details of the project. The annual income of the project after full production is 450 million yuan, the annual net profit is 614 million yuan, the after-tax financial internal rate of return is 63.34%, and the payback period of after-tax investment (including construction period) is 3.49 years.

Yongtai Technology said that after the implementation of the project, it can greatly enhance the production capacity of the company's existing VC and FEC products, effectively meet the future market demand for lithium battery materials, strengthen the company's business development in the lithium battery materials sector, improve the strategic layout, and continuously strengthen the company's core competitive advantage, which is in line with the company's overall development strategy. At the same time, by expanding the scale of production and operation, it will help the company to continuously strengthen its advantages in production cost, supply cycle and quality assurance, continuously improve its market competitiveness and share, and improve the company's overall profitability.

It is understood that Yongtai Technology has normally produced high-quality lithium hexafluorophosphate and LIFSI (lithium difluorosulfonimide). Inner Mongolia Yongtai Construction's annual output of 5000 tons of VC (vinylidene carbonate) and 3000 tons of FEC (fluoroethylene carbonate) has entered the trial production stage, and the product quality indicators meet the requirements of downstream customers. In addition, the company has successfully developed commercial production processes of other mainstream electrolyte additives with high quality, high efficiency and high performance, such as LiDPF (lithium difluorophosphate) and LiDODFP (lithium difluorodioxalate). In the future, the company will further increase its technical investment and strive to achieve full coverage in the field of electrolyte and its important additives in the middle industrial chain of lithium batteries.