LiFSI Receives 450 million yuan of Investment with Application in Innovative Power and Energy Storage Batteries

SHANGHAI, Aug 30 (SMM) - Do-Fluoride New Materials (DFD) held the 42nd meeting of the sixth board of directors on August 26, 2022, at which meeting participants reviewed and approved the Proposal on the Establishment of Joint Venture with Investment, and agreed that the company execute the Joint Venture Agreement with Zhuhai Smoothway Electronic MATERIALS Co., Ltd. (hereinafter referred to as "Zhuhai Smoothway") to jointly invest in the establishment of Do-Fluoride Baichuan New Material Co., Ltd. (hereinafter referred to as the “Joint Venture”, and the name awaits approval from the regulator). 

According to public information, Henan Do-Fluoride Baichuan New Material Co., Ltd. was established on August 26, 2022. The legal representative is Li Yunfeng, and the registered capital is 450 million yuan, of which DFD has subscribed for 390 million yuan, accounting for 86.67% of the equity of the joint venture; Zhuhai Smoothway subscribed 60 million yuan, accounting for 13.33%. The Joint Venture’s business scope includes: manufacturing of special electronic materials; sales of special electronic materials; research and development of special electronic materials. The Joint Venture plans to build a 10,000-mt/year LiPF6 production line and a 5,000-mt/year LiFSI production line. Party A will convert 50% of the production capacity of LiPF6 into NaPF6 within three months according to the needs of Party B.

In terms of the product pipeline, NaPF6 is mainly used in sodium batteries, and LiFSI is the mostly widely applied lithium salt to the next-generation electrolyte. Compared with LiPF6, LiFSI has better electrical conductivity, higher electrochemical and thermal stability, and stronger resistance to hydrolysis. The addition of LIFSI can greatly increase the charge and discharge cycles of the battery, and stabilise the highly active electrode materials such as high-nickel cathode and high-voltage cathode, thereby prolonging the battery life; and at the same time it could improve the flame retardant performance of the electrolyte to enhance the safety performance. At present, LiFSI is more often used in new types of batteries (such as Tesla 4680 batteries). With the mass production of Qilin batteries and 4680 batteries, the application of LiFSI is expected to climb further.

Sodium-ion batteries are currently in the early stage of industrialisation, and they are mostly used in low-speed electric vehicles, some energy storage scenarios, construction machinery, base station communication backup power, etc. Due to the booming demand for energy storage, coupled with the current limited lithium resources and high lithium prices, the need for low-cost energy storage battery has become more and more urgent, and sodium-ion battery research has also advanced by leaps and bounds in the past decade. Currently, in the period of rapid and intensive development of the global energy storage industry, sodium-ion batteries will take the lead in cutting into the energy storage market by virtue of its unique advantages. In the future, other fields like low-speed electric vehicles, home energy storage, grid energy storage, etc. are also expected to grow rapidly, which will in turn drive the demand for NaPF6. At present, a number of companies such as DFD, Tianji Co., and Yan’an Bikang possess know-hows of NaPF6, but large-scale application depends on the actual promotion of sodium batteries.

With the help of its technical advantages in the field of fluorine chemical industry, DFD has engaged in the production of LiPF6, the main raw material of the electrolyte for lithium-ion batteries, and has become a leader in the LiPF6 industry. Zhuhai Smoothway, through its own core technology and independent intellectual property rights, is also on course to becoming a high-end lithium-ion battery electrolyte power in China. The cooperation between DFD and Zhihai Smoothway this time on projects such as LiPF6 can further optimise the customer structure and product advantages of DFD, and better position DFD in the growth market of sodium battery and innovative lithium salts to enhance its leading role. On the other hand, for the electrolyte company Zhuhai Smoothway, the partnership with DFD can enhance its own raw material supply chain, making the cooperation a powerful alliance.