Shenzhen Xinxing subsidiary plans to invest 700 million yuan to build a project with an annual output of 15000 tons of lithium hexafluorophosphate.

On November 5th, Shenzhen Xinxing (603978.SH) announced that due to the need of strategic development, the company's wholly-owned subsidiary Songyan Metallurgical Materials (Quannan) Co., Ltd. (referred to as "Songyan Metallurgy") plans to invest RMB700 million in Songyan Industrial Park, Quannan County, Ganzhou City, Jiangxi Province, using the existing plant to build a lithium hexafluorophosphate project with an annual capacity of 15000 tons.

The construction period of the project is 1.5 years, and the construction plan is divided into four phases: the first phase has an annual production capacity of 800tons, the construction of the demonstration production line has been completed, various commissioning has been basically completed, and the raw materials, personnel and supporting facilities for production have been put in place. Up to now, the commissioning of the equipment has been smooth. The annual production capacity of the second phase is 3000 tons. At present, the equipment has been purchased and is expected to be installed in the plant in December 2021. The third phase has an annual production capacity of 5000 tons, starting equipment procurement at the end of November 2021, and the fourth phase has an annual production capacity of 6000 tons, starting equipment procurement and installation in 2022.

The lithium hexafluorophosphate products produced by this project can alleviate the current tight supply of lithium hexafluorophosphate in China, and at the same time, the waste acid (mixed acid of hydrofluoric acid and hydrochloric acid) produced by the production of lithium hexafluorophosphate can be used in the production of raw materials fluoride salt in the company's industrial chain to further reduce the company's comprehensive cost.