Another listed company layout lithium iron phosphate! It is proposed to build a new energy material project of 200000 tons per year.

On the evening of November 19th, Chuanfa Dragon Python (002312) announced that the company planned to build a 200000 ton / year new energy material project in Deyang-Aba Ecological Economic Industrial Park (Dea Industrial Park for short). After consultation with the German and Arab Industrial Park Management Committee, the two sides agreed to sign the Investment Agreement. The project plans to build 200000 tons of lithium iron phosphate and 200000 tons of iron phosphate production lines, with a construction period from June 2022 to December 2024.

According to the announcement, the project will be implemented in stages: the first phase will produce 100000 tons of lithium iron phosphate / 100000 tons of iron phosphate annually, which will be completed and put into production in October 2023; the second phase will produce 100000 tons of lithium iron phosphate / 100000 tons of iron phosphate production line, and will be completed and put into production in December 2024.

Chuanfa Dragon Python said that as the "investment agreement" signed this time has the nature of a framework agreement, the amount of investment involved has not yet been determined, and the subsequent two sides will be agreed in the formal investment agreement.

Data show that Chuanfa Dragon Python was established in 1997, the controlling shareholder is Sichuan Development (holding) Co., Ltd., a wholly-owned subsidiary of Sichuan Development Mining Group Co., Ltd., and the actual control is the State-owned assets Supervision and Administration Commission of Sichuan Provincial Government. In September 2019, Chuanfa Dragon Python completed the acquisition of 100% equity in Dragon Python Earth Agriculture Co., Ltd., officially stepping into the field of phosphorus chemical industry.

According to a research report released by Huaan Securities, Chuanfa Dragon Python is the largest industrial monoammonium phosphate manufacturer in China, with a total production capacity of 400000 tons / year. In 2020, the total output is 364800 tons, accounting for 17.37% of the total output of the industry. The supply of industrial-grade monoammonium phosphate is tight, prices continue to rise, and the scale advantage of leading enterprises is significant.

According to the announcement issued by Chuanfa Dragon Python on October 29, the company's acquisition of 100% stake in Tianrui Mining is progressing in an orderly manner. At present, it has completed the previous due diligence, audit, evaluation and other related work, is performing the internal audit process, and further improves the relevant documents. Tianrui Mining has resource reserves of 95.975 million tons, retained resources reserves of 89.181 million tons, production scale of 2.5 million tons / year, supporting 2 million tons / year mineral processing plant, is currently the largest producer of phosphate ore and phosphorus concentrate in Mabian area of Sichuan Province.

After the completion of Chuanfa Dragon Python's acquisition of Tianrui Mining, the company will have an annual production capacity of 3.65 million tons of phosphate rock, at which time the self-sufficiency rate of phosphate rock in Mianzhu base will be significantly increased, which will make up for the shortage of raw materials and greatly improve the phosphate ore dressing capacity.

Huaan Securities analysis said that Chuanfa Dragon Python is located in the southwest, rich in lithium ore resources, low power costs, the company is expected to quickly cut into the field of new energy cathode material lithium iron phosphate. The rich resources and complete industrial chain in the southwest region will help the company to dig deep into the southwest region and accelerate its entry into the positive material track. Last year, the company supplied industrial-grade monoammonium phosphate to Hubei Wanrun, the core enterprise of lithium iron phosphate. The company quickly cut into the field of iron phosphate and lithium iron phosphate, and is expected to further extend the industrial chain downstream on the basis of tamping the main industry, and move forward to the high-prosperity track of iron phosphate and lithium iron phosphate.

Battery net noted that in a communication with investors last month (October 20), Chuanfa dragon python said that industrial-grade monoammonium phosphate has become one of the important raw materials of iron phosphate, the precursor of lithium iron phosphate, the cathode material of new energy batteries (lithium iron phosphate battery). In the first half of 2021, the company's industrial-grade monoammonium phosphate has been sold to a number of iron phosphate industry enterprises.

In addition, since the second half of this year, in addition to Chuanfa dragon python, there are Yuntianhua (600096), Yuntu Holdings (002539), Hubei Yihua (000422), Xinyangfeng (000902) and other phosphorus chemical industry listed companies announced the layout of iron phosphate field.