The total investment of the project of Chuanfa Dragon Python Lithium Power New Energy material Base is 12 billion yuan.

March 22, Deyang City, Sichuan Province, the first quarter of 2022 major industrial projects concentrated construction activities and Deyang Sichuan dragon python lithium new energy material base project opening ceremony was held in Mianzhu City.

Among them, the Deyang Chuan Fa long python lithium electricity new energy material base project has a total investment of 12 billion yuan, which is the largest single industrial project since the establishment of the city in Deyang. The project is located in Dea Industrial Park, Hanwang Town, Mianzhu City, Deyang City. Covers an area of 650mu.

The project will rely on Sichuan's rich clean energy, lithium resources in Aba Prefecture, Sichuan's industrial development advantages, Chuanfa dragon python fine phosphate technology advantages and circular economy development model advantages, make full use of Sichuan's comprehensive advantages in phosphate rock, lithium ore, vanadium titanium magnetite and hydropower, and gather phosphorus and lithium resources with the support of the green technology of "parathion-titanium-iron-lithium" circular economy. The production of new energy material lithium iron phosphate cathode materials will promote the agglomeration and development of the upstream and downstream of the new energy industry chain, and realize strong chain, complementary chain and extended chain.

According to the announcement issued by Chuanfa Dragon Python (002312) in February this year, the project mainly produces 200000 tons of lithium iron phosphate and 200000 tons of iron phosphate and supporting products. It is an extension of the industrial chain of Chuanfa Dragon Python on the basis of the existing industry. The company has upstream resources, industrial base and cost control advantages. The construction cycle of the project is planned from March 2022 to December 2026, the first phase of the project is tentatively scheduled to be completed and put into production in December 2024, and the second phase of the project is tentatively scheduled to be completed and put into production in December 2026.

In this regard, Everbright Securities released a research report and analyzed that Chuanfa Dragon Python had previously announced a production line project with an annual production capacity of 200000 tons of lithium iron phosphate, 200000 tons of iron phosphate and 300000 tons of sulfuric acid in Panzhihua Vanadium and Titanium High-tech Industrial Development Zone in Sichuan Province. and the annual production of 100000 tons of iron phosphate in Qianjiang City, Hubei Province. Superimposed by this announcement, the company's overall production capacity of iron phosphate is planned to reach 500000 tons, lithium iron phosphate capacity is planned to reach 400000 tons, and the production capacity planning of phosphorus series new energy materials ranks in the forefront of domestic enterprises. As the domestic industrial grade monoammonium phosphate leader, the company has significant cost advantages and raw material supply advantages in the ammonium phosphate production route, which is beneficial for the company to quickly cut into the field of iron phosphate / lithium iron phosphate new energy cathode materials.