The total investment is 11.4 billion yuan! The first phase of Jiangxi Copper Industry Lithium Electric Copper foil Project with an annual output of 100000 tons begins to be built.

On March 1st, according to the news released by Jiangxi Copper (600362), the largest investment project in Jiangtong (Shangrao) Industrial Park, 100000 tons of lithium copper foil (phase I) project, officially started construction on February 28th.

According to reports, Jiangxi Copper Shangrao Lithium Copper foil Project is a key project of the company's "14th five-year Plan" strategic planning, and it is also an important measure for copper foil companies to seize opportunities, develop operations, and strive to build first-class copper foil enterprises. The project has a total investment of 11.4 billion yuan, covers an area of 509mu, and has a designed annual production capacity of 100000 tons. It is divided into two phases of construction, mainly producing and operating 4.5 microns, 6 microns and other high-grade ultra-thin lithium copper foil, which is used in new energy vehicle lithium battery and energy storage industry.

The battery network learned that in July 2021, Jiangxi Copper signed an Investment Promotion Project contract with Shangrao Economic Development District, through the establishment of a new registered company, investment in the Shangrao Economic Development area to build three projects with an annual output of 100000 tons of lithium copper foil, 220000 tons of copper rods and 30, 000 tons of casting materials, with a total investment of 12.8 billion yuan.

Among them, the lithium electric copper foil project with an annual output of 100000 tons is a subsidiary of Jiangxi Copper Industry, Jiangxi Jiangxi Tongyazi Copper foil Co., Ltd. (hereinafter referred to as: Jiang Copper foil) registered and established a new company in Shangrao Economic Development District. The first phase of the project will be implemented in stages, and the first phase of the project will be completed and put into production by December 31, 2023. The first phase of the project will be completed and put into production before December 31, 2023. The second phase of the project will have an annual output of 50, 000 tons of lithium copper foil and will be completed and put into production by December 31, 2028.

It is worth noting that on February 22, Jiangxi Copper also issued an announcement that the company's board of directors authorized the company and the management of Jiangxi Copper foil to start the preliminary preparatory work for the listing of Jiang Copper foil, including, but not limited to, the demonstration of the feasibility plan, the organization and preparation of the listing plan, the formulation and implementation of the joint-stock reform plan, and so on.

The content of the announcement shows that Jiang Copper foil is mainly engaged in the research and development, production and sales of all kinds of high-performance electrolytic copper foil. The company's products are classified by application field, including electronic circuit copper foil and lithium copper foil. Among them, lithium copper foil products are mainly lithium battery copper foil for power battery, lithium battery copper foil for digital electronic products, lithium battery copper foil for energy storage, and finally used in new energy vehicles, electric bicycles, 3C digital products, energy storage systems and other fields.

In terms of customers, Jiangxi Copper official WeChat information shows that at present, Jiangxi Copper foil has signed contract agreements with domestic first-line lithium battery customers, such as Honeycomb Energy, Funeng Technology, Ruipu Energy, etc., successfully allowing "Jiangtong" brand lithium copper foil to enter the new energy battery market, opening up a broad market for the sales of lithium battery products.

In terms of production capacity, in addition to the 100000 tons of lithium copper foil project that has just been built, Jiang Copper foil overcame the impact of the epidemic on the basis of 15000 tons in the original first and second phases, and successfully completed the third phase, with a total production capacity of 30, 000 tons. And, taking advantage of the situation, the feasibility study report of the fourth phase of 10,000 tons / year high-grade electrolytic copper foil reconstruction and expansion project was examined and approved on January 5, 2022, and the project entered a period of rapid progress, which is scheduled to be completed and put into production in December 2022.

Jiangxi Copper said that since March 2020, new infrastructure construction has become one of the hotspots in the Chinese market. The analysis report shows that driven by the "new infrastructure", downstream applications such as 5G base stations and new energy vehicles are expected to usher in rapid development, which will lead to an increase in the market demand for electrolytic copper foil to nearly 100 billion yuan. Vigorously develop high-end electrolytic copper foil import substitution, enter a rare period of strategic opportunity.

In addition, according to the performance forecast issued by Jiangxi Copper a few days ago, the company expects the net profit attributed to shareholders of listed companies to be 5.22 billion yuan to 5.916 billion yuan in 2021, an increase of 2.9 billion yuan to 3.596 billion yuan over the same period last year, or 125% more than the same period last year.