Fengshan Quannuo's Electrolyte Project Begins Production, Expectations for Market Recovery

SMM Analysis: Jiangsu Fengshan Quannuo Company's Electrolyte Project Commences

SMM, December 12th: Jiangsu Fengshan Quannuo New Energy Technology Co., Ltd. successfully started its project on December 9th, with the first batch of electrolyte products officially coming offline. The project was signed successfully on August 11, 2022, and the environmental impact assessment report was publicly announced on February 13, 2023. At the time of the project signing, lithium prices were rising, and the core raw material for electrolyte, lithium hexafluorophosphate, also rose to 258,000 yuan per ton. Currently, as lithium prices continue to decline, the price of lithium hexafluorophosphate is also declining. In the case of minimal price changes in conventional solvents and additives, the cost of lithium hexafluorophosphate in electrolytes is gradually decreasing. Due to the perception of weak market demand, the electrolyte factory has actively reduced production. It is expected that when the capacity of Fengshan Quannuo's electrolyte project reaches its peak by the first quarter of next year, the deep destocking in the battery factory will end, and terminal demand will be somewhat boosted, leading to a certain recovery in the electrolyte market.