On November 7, Huayou Cobalt issued an announcement that the company and Hubei Xingfa Chemical Group Co., Ltd. (hereinafter referred to as “Xingfa Group”) signed the “Cooperation Framework Agreement” in Yichang City, Hubei Province.
According to the announcement, Xingfa Group and Huayou Cobalt agreed to cooperate around the entire industrial chain of new energy lithium battery materials, and in accordance with the principle of one-time planning and step-by-step implementation, to jointly invest in phosphate mining, phosphorus chemical industry, and wet process in Yichang, Hubei. An integrated industry of phosphoric acid, iron phosphate and lithium iron phosphate materials, to build 500,000 tons/year iron phosphate, 500,000 tons/year lithium iron phosphate and related supporting projects.
It is understood that Xingfa Group is mainly engaged in the production, sales, import and export of phosphorus chemical products; the mining and sales of phosphate ore; and the mining, processing and sales of silica ore. As of September 30, 2021, Xingfa Group has total assets of 30.879 billion yuan and net assets of 13.073 billion yuan; from January to September 2021, it has realized operating income of 16.580 billion yuan and net profit of 2.714 billion yuan.
Huayou Cobalt said that the company’s development strategic plan during the “14th Five-Year Plan” period will focus on the lithium battery new energy material industry as its core business. Lithium iron phosphate is an important technical route in lithium battery cathode materials. Conducive to the company’s creation of a more comprehensive and competitive new energy lithium battery industry ecology. Xingfa Group is a well-known fine phosphorus chemical enterprise in China. The company signed a cooperation framework agreement with it this time to jointly invest in the construction of an integrated industry of phosphate mining, phosphorus chemical industry, wet-process phosphoric acid, iron phosphate and lithium iron phosphate materials, which will help Both parties will give full play to their respective advantages in resources, technology and industrial chain to build an internationally competitive lithium iron phosphate material industrial chain, and promote the company to achieve higher-quality development.
Battery.com noticed that in order to expand the lithium iron phosphate business, on November 5, Huayou Cobalt announced that it intends to purchase its holdings from Huayou Holdings by paying cash or issuing new shares through its subsidiary Bamo Technology. 100% equity of Vanadium Technology.
According to the data, Shengvana Technology focuses on the production and research and development of lithium iron phosphate, a lithium battery material, with a total planned annual production capacity of 75,000 tons, which will be constructed in three phases. The annual production capacity of 15,000 tons in the first phase has been officially put into operation in May 2019, and 2.5 in the second phase. The production of 10,000 tons is planned to be put into operation at the end of 2021, and the construction of the 35,000 tons of Phase III has started and is expected to be put into operation in mid-2022.
According to the research report of Guosheng Securities, since 2016, Huayou Cobalt is aiming at the integration of new energy lithium battery materials, comprehensively deploying from nickel and cobalt resources to downstream ternary cathode material integration projects, and using high nickel ternary as the main future development Direction, the total planned production capacity will reach 325,000 tons of ternary precursors and 226,500 tons of cathode materials.
Guosheng Securities said that in 2020, Ternary Materials will still occupy 61% of the power battery market. In 2021, the low-end new energy vehicle market corresponding to lithium iron phosphate will develop rapidly; in July 2021, the monthly installed capacity of lithium iron phosphate exceeded three yuan for the first time, and it has become an important technical route for lithium battery cathode materials. The market may appear in the future Ternary and iron-lithium are developing simultaneously. Huayou Cobalt intends to actively expand its lithium iron phosphate business through acquisitions and joint ventures, and will rebuild an integrated lithium iron phosphate industry, supplementing the company’s ternary materials integration sector, and further improving the company’s overall lithium battery materials field. Series layout to create a more comprehensive and competitive industry ecology.