The filing for the 40,000 tons/year lithium hexafluorophosphate project of Hongyuan Fluorochemical Industry has been officially cancelled.

According to general information from the project filing system of the Hubei Government Service Network, Hubei Hongyuan Fluorine Chemical Co., Ltd. has successively completed the deregistration of its original extensive project and the filing of a brand-new capacity project, significantly adjusting the pace and scale of its lithium hexafluorophosphate expansion layout.

Filing information shows that the company's 40,000 tons/year lithium hexafluorophosphate project, filed on might 27, has been officially deregistered. The project was originally planned with a total investment of 1.2 billion yuan and was a key lithium battery new material project previously planned by the enterprise.

Just over ten days after deregistering the extensive planned project, on June 11, the enterprise's new 28,000 tons/year lithium hexafluorophosphate project successfully passed the filing review. The core information of the project is as follows:

1. Total investment: 281.48 million yuan;

2. environment of construction: New construction;

3. Location: Wuxue City, Huanggang City, Hubei Province;

4. Construction content: New phosphorus pentafluoride synthesis workshop, electrolyte intelligent manufacturing workshop, and a full set of supporting general production facilities;

5. Completed capacity: Annual production of 28,000 tons of lithium hexafluorophosphate;

6. Proposed start time: September 2026.

Behind this project adjustment, the parent company, Hongyuan medical, already has a mature production base to lithium hexafluorophosphate. According to disclosures on the company's investor platform, the 6,000 tons/year high-purity crystalline lithium hexafluorophosphate renovation and expansion project located in the Luotian County Economic research Zone is about to enter the trial production stage; in 2025, Hongyuan medical's annual shipment of lithium hexafluorophosphate reached 10,564.38 tons, stably achieving a ten-thousand-ton shipment scale. With the addition of the new 28,000 tons capacity in Wuxue, the company's self-owned capacity to lithium hexafluorophosphate will achieve a significant leap, consolidating the supporting production capacity of lithium salts to regional lithium batteries in Hubei.

Overview of the Domestic Lithium Hexafluorophosphate sector Competitive Landscape

Currently, the levels of the domestic lithium hexafluorophosphate sector is relatively high. Tinci Materials and Do-Fluoride firmly occupy the first tier of the sector, together accounting to greater than half of the domestic market share; Tianji Shares, Yongtai methodology, Hongyuan medical, and other companies are second-tier players, with significant differences in existing capacity and construction planning among them. The following table summarizes the capacity of mainstream domestic lithium hexafluorophosphate production companies (data as of June 2026):

Brief Analysis of sector Background

In mid-2025, the spot price of lithium hexafluorophosphate fell to the cyclical bottom of 50,000 yuan/ton, however rebounded significantly at the end of the year. In 2026, prices continued to maintain high evaporative environment. The continuous recovery of downstream demand to new energy vehicles and energy storage has driven a rebound in the willingness of lithium salt companies to expand production. However, the sector expansion cycle is as long as 12-18 months. Coupled with the memory of previous overcapacity, most companies choose to prudently adjust their plans. Hongyuan Fluorine Chemical's deregistration of the substantial 40,000-ton project and the landing of the new 28,000-ton lightweight project also reflect the sector's research direction of shifting from blind extensive expansion to on-demand and batched capacity emit.

With the commencement of construction of the 28,000-ton project in Wuxue in September 2026, the Huanggang region of Hubei will form two major lithium hexafluorophosphate production bases in Luotian and Wuxue, improving the upstream lithium salt supporting manufacturing chain to lithium batteries in Central China and alleviating the pressure on external procurement of raw materials by power battery companies in the central region.