On the evening of December 13, Tianyuan announced that it intends to set up a new company to invest in the construction of 100,000 tons / year lithium iron phosphate cathode materials project, and according to the actual situation by the company's subsidiaries supporting the construction of phosphoric acid, iron phosphate project (the above three projects are collectively referred to as "lithium iron iron phosphate integration project").
The announcement shows that the annual output of 100,000 tons of lithium iron phosphate cathode materials integration project investment body for Tianyuan shares of new companies and existing subsidiaries, the investment amount of 2.389 billion yuan, the project construction period is expected to be 24 months, the final annual net profit is expected to be 689 million yuan.
It is understood that the advantages of the implementation of the project are: the company's subsidiary, Mabian Infinity Mining Co., Ltd. rich phosphate resources, a subsidiary of Sichuan Ping Shan Tianyuan Titanium Co. The project will fully take advantage of Tianyuan's high-quality phosphate ore and iron resources to solve the stable source of upstream raw material supply and help reduce production costs.
Ltd. and Xiamen Cang Ya Investment Partnership (limited partnership) in Ya'an Economic and Technological Development Zone, Sichuan Province, to establish Ya'an Xia Tungsten New Energy Materials Co. Ltd.
High demand leads to a price increase
The rapid development of the new energy vehicle industry has brought about a significant increase in the output and installed capacity of power batteries. According to the data released by the China Automotive Power Battery Industry Innovation Alliance, from January to November this year, China's lithium iron phosphate battery production accumulated 105.3GWh, accounting for 56.0% of total output, a cumulative increase of 275.7% year-on-year, far exceeding the overall increase of 175.5% in power battery production over the same period. In terms of loading volume, in the first 11 months of this year, China's power battery loading volume was 64.8GWh, up 50.5% year-on-year and 270.3% YoY.
The performance of lithium-ion batteries depends mainly on the anode and cathode materials, lithium iron phosphate and ternary materials are the two most widely used materials in new energy vehicle power batteries. Compared with ternary cathode material, lithium iron phosphate cathode material has the advantage of low cost, good safety performance, long life, and more environmentally friendly.
Brokerage research report is expected that in 2025 global new energy vehicle sales will reach 17 million, equipped with lithium iron phosphate new energy vehicles will reach 30%, the global demand for lithium iron phosphate production in 2025 is expected to reach 2.17 million tons, 4-year compound growth rate will reach 60%, corresponding to the 2025 market space will reach 83.8 billion yuan.
The strong demand has led directly to the rise in the price of lithium iron phosphate. Following the first monthly price plunge in November, in December, the average spot price of power lithium iron phosphate exceeded 90,000 yuan / ton. Shanghai Steel Union released data showing that on December 13, lithium iron phosphate rose 4,500 yuan / ton.
Many companies to expand production of lithium iron phosphate
Bullish prospects for lithium iron phosphate, more and more companies are actively laying out lithium iron phosphate production capacity.
The evening of December 9, Zhongwei announced that the company's board of directors considered and approved the "proposal to sign an investment agreement with the people's government of Kaiyang County. The total investment of the project is about 10 billion yuan, to build an annual output of 200,000 tons of iron phosphate and lithium iron phosphate materials production line integration project.
And on the previous November 30, Zhongwei said the company will invest with Dang Sheng Technology in Guizhou to build a total capacity planning and construction of not less than 300,000 tons / year of iron phosphate, lithium iron phosphate and related phosphorus resources development, phosphorus chemical supporting projects.
December 8 news, Taihe Technology said in the interactive platform, the company's wholly-owned subsidiary Taihe New Energy Materials (Shandong) Co., Ltd. to build an annual output of 10,000 tons of lithium iron phosphate high-end cathode materials project has completed the project procedures.
On December 3, EVERLIGHT signed the "Lithium Iron Phosphate Project Cooperation Agreement" with TOP Anshi, Anshi New Energy Partnership and Wu Xuefeng to jointly invest in Jiangsu Youanshi Battery Materials Co.
On December 1, Longbai Group announced that the company and Nanzhang County Government recently signed a project investment contract to invest in the construction of 150,000 tons per year of battery-grade lithium iron phosphate project and titanium dioxide reprocessing expansion project (200,000 tons/year) in Nanzhang County, with a total investment of 3 billion yuan.
In addition, Yuntianhua, Zhongyin Velvet, Fulin Precision, Chuanjinuo, Chuanfa Longpython, De Fang Nano, Long Ban Technology, Bata shares have also expanded its investment in the field of lithium iron phosphate.
Lithium iron phosphate future space is vast
Overall, it seems that lithium iron phosphate has great potential. Institutions expect the global demand for lithium iron phosphate batteries in 2025 will reach 600GWh, lithium iron phosphate material demand will be close to 2 million tons.
At the same time, with more and more models with lithium iron phosphate (such as BYD's new electric car, Great Wall Ola Cat series, Wuling Hongguang MINI, Xiaopeng G3, etc.), as well as the increase in the application of lithium iron phosphate in the field of energy storage, all bring great opportunities for lithium iron phosphate.
It is worth noting that the expansion cycle of lithium iron phosphate cathode in 6-12 months, a long time. Industry analysis suggests that 2022 may be difficult to constitute a supply bottleneck, although the head company is still expected to maintain a capacity utilization rate of about 80%.
In short, lithium iron phosphate in the future or in more scenarios such as commercial vehicles to occupy a place, at the same time, in terms of cost, technology and other aspects of the industry to put forward higher requirements.
