The main project of Xiangtan electrification project with an annual output of 20,000 tons of spinel lithium manganate has been basically completed.

On the morning of June 15, Xiangtan Dianhua (002125) announced that the main project of the company's holding subsidiary Jingxi Lijin New Materials Co., Ltd. (hereinafter referred to as "Jingxi Lijin") with an annual output of 20, 000 tons of spinel lithium manganate battery has been basically completed. the first automatic production line with a monthly production capacity of 1000 tons has completed equipment installation and commissioning and was officially put into commissioning on June 14, 2021. Jingxi Lijin will timely install another production line with an annual production capacity of 10,000 tons according to the operation of the production line and market conditions.

Xiangtan Electric said that lithium manganate is mainly used in electric bicycles and low-speed electric vehicles, small power (power tools, etc.), digital electronic products, energy storage and other fields, and can also be mixed with ternary materials. in recent years, the market of electric bicycles and low-speed electric vehicles has developed rapidly. The trial operation of Jingxi Lithium manganate project production line is an important step for the company in the manganese series new energy battery material industry, the company will add lithium manganate business, which will help to further enhance the company's competitiveness and will have a positive impact on the company.

In addition, Xiangtan Dianhua said in an investor interaction a few days ago that the target market for the company's future production of high-end lithium manganate includes the field of new energy vehicles.

It is reported that Xiangtan electrification is mainly engaged in the research, development, production and sales of manganese dioxide, battery materials and other new energy materials, and is the largest producer in the domestic electrolytic manganese dioxide industry. Its products are exported to nearly 20 countries and regions, including Southeast Asia, South Asia, and South America, and are strategic partners of world-famous battery manufacturers such as Jin Bawang, Yongbei, Nanfu, Shuanglu, etc. Is Xinxiang Zhongtian, Qingdao Qianyun, Anhui Boshi and other secondary battery production enterprises of high-quality suppliers.

According to Xiangtan Dianhua's quarterly report in 2021, the company's revenue from January to March was about 342 million yuan, an increase of 66% over the same period last year, and its net profit was about 19.18 million yuan, an increase of 278.47% over the same period last year. This is mainly due to the overall increase in product prices in the first quarter of 2021 after the company gradually raised the price of its electrolytic manganese dioxide products in November 2020.

It is worth noting that on the evening of March 23, Xiangtan Electrochemical announcement, the main project of the expansion of the company's wholly-owned subsidiary Jingxi Xiangtan Electrochemical Technology Co., Ltd. (hereinafter referred to as "Jingxi electrification") with an annual output of 10,000 tons of high-performance lithium manganate electrolytic manganese dioxide has been completed and put into trial operation.

Xiangtan Electric said that with the trial operation of the above-mentioned projects in Jingxi, the company's total production capacity of electrolytic manganese dioxide has reached 122000 tons, which is conducive to meeting customer supply demand, alleviating the situation that products are in short supply, and enhancing the company's market competitiveness and profitability.

On June 4, Xiangtan electrification said on the investor interactive platform that the company's existing lithium manganate electrolytic manganese dioxide products can be used to prepare lithium manganate, with customers such as Anhui Boshi, Zhongtian Xinneng and so on. At the same time, the company said that due to strategic adjustment, the company will focus on the development and application of manganese battery materials, and plans to publicly transfer its stake in Hunan Lihe Houpu. Hunan Dianhua Houpu Technology Co., Ltd., a wholly-owned subsidiary of Hunan Lihe Houpu, is undergoing technical transformation and is expected to be fully put into production in the middle of the year.

In addition, Xiangtan electrification also said on the investor interactive platform that the company currently has two manganese ore resources in Xiangtan, both of which are manganese carbonate mines, and at the same time, the company has been actively seeking and striving to control better manganese carbonate and manganese oxide and other manganese ore resources.