Shenzhen Capchem Technology Intends to Invest 1.984 Billion Yuan in Lithium Batteries and Semiconductor Business, Electrolyte Prices Soared

SHANGHAI, Dec 1 (SMM) - Shenzhen Capchem Technology plans to invest 1.984 billion yuan in Chongqing Capchem lithium battery materials and semiconductor chemicals projects.

The project is worthy of 784 million yuan. The specific investment projects include an annual output of 200,000 mt of lithium-ion battery electrolyte and materials, an annual output of 80,000 mt of semiconductor chemicals, and supporting public works and auxiliary facilities. After the project is fully completed and commissioned, it is estimated that an annual operating income of about 5 billion yuan will be gained.

In addition, the company also plans to invest in the construction of the Zhuhai Capchem electronic chemicals project, with total investment of about 1.2 billion yuan. It will be commissioned in H1 2024. The project include an annual output of 105,000 mt of lithium battery materials and an annual output of 130,000 mt of semiconductor chemicals. The annual operating income is estimated to stand at about 6 billion yuan.

With the rapid development of the new energy vehicle market, the electrolyte, which is one of the raw materials for motive power batteries, has also caused a lot of companies to rush for it, and its prices have risen sharply. The average price of SMM electrolyte (for use in LFP) was 119,000 yuan/mt as of December 1, up 81,000 yuan/mt or 213.16% from the beginning of the year.

On the raw material side, the prices of lithium hexafluorophosphate gradually stabilised. The current mainstream quotations stand at 540,000-560,000 yuan/mt, and prices of EC and VC have also temporarily stabilised. On the supply and demand side, demand from end-users is still increasing, driving the demand for electrolyte. The supply shortage is still present. Electrolyte prices are expected to continue to rise.

That is why the company expand its business of electrolyte and lithium battery.