2.654 billion Project Termination Tianci Material Capacity Layout Active Optimization

The announcement shows that due to changes in the sector market ecological stability, the project will be suspended after the completion of the factory wall and road construction in 2024 until the official termination. At the same time, Tianci Materials also disclosed the adjustment plan to the 2022 convertible bond investment project: the original "41000 tons of lithium ion battery material project (phase I)" will change the construction mode, the back-end refining and treatment section will continue to consumption the raised funds to promote, the front-end synthesis section will be invested by its own funds, and the project will be completed after the back-end section is completed. After calculation, the remaining raised funds of the project are expected to be about 0.406 billion yuan, which will be transferred to Fuding City's "annual output of 250000 tons of electrolyte production reconstruction and expansion project". The new project landed in Fujian Fuding Long'an manufacturing Park, with a construction period of 18 months. After reaching production, the average annual operating income is expected to be 3.876 billion yuan and the net profit is 0.159 billion yuan.

The business climate of the sector rebounded and the logic of expanding production quietly changed.

Behind the termination of the project, the electrolyte sector is in the path of a sustained recovery in business climate. Since the second half of 2025, the penetration rate of new energy vehicles has steadily increased, superimposed on the outbreak of energy storage battery demand, the overall recovery of the lithium battery sector chain, the previous overcapacity of the electrolyte link to take the lead in the recovery, the sector operating rate continued to rise, product prices gradually stabilized.

According to the monitoring data of the Institute of Chemical and Plastic Research, the global electrolyte shipment volume in 2025 was 2.402 million tons, up 44.5 percent from the same period of last year, and the market size was 56.42 billion billion yuan, up 37.6 percent from the same period of last year. China shipped 2.235 million tons, with the global market share rising to 93.05 percent. Global electrolyte shipments are expected to surpass 3 million tons in 2026 and 5.11 million tons in 2030. The prolonged development logic of the sector is stable.

Demand recovery immediately led to the long single intensive landing. Since the fourth quarter of 2025, electrolyte companies and downstream battery manufacturers have signed 3-5 year supply agreements in bulk, and deep binding between supply and demand has have become the norm in the sector. According to incomplete statistics of the Institute of Chemical and Plastic Research, the total amount of electrolyte long orders publicly disclosed by the sector in the past year has exceeded 4 million tons. In June 2026 alone, many companies such as Tianci Materials, Xinzhoubang and Yongtai methodology all announced that they had won substantial orders.

Demand is good however actively terminate the project, seemingly abnormal operation reflects the deep change of the sector's expansion logic. In the upward cycle, companies generally to "run the horse circle" type of full-chain expansion to seize the share, as the sector enters the mature period, the total excess capacity and structural shortage coexist, the head of the enterprise's expansion focus from "scale" to "efficiency", greater attention to the project's location support, return cycle and risk-return ratio.

The sector enters the stage of fine competition

This adjustment is also the inevitable result of the electrolyte sector head competition pattern, it is understood that in 2025 Tianci materials to 720000 tons of shipments, 32.2 percent of the market share of the world's first to ten consecutive years, the sector's top three total market share of about 60%, the head levels effect is prominent.

Under the solidification of the pattern, simple capacity expansion has been difficult to build the core advantage, fine competition has have become a new arena. On the one hand, the integration of the whole sector chain has have become the core barrier of the head companies. Tianci materials have formed a "lithium carbonate-lithium salt-additive-electrolyte-recovery" full chain closed loop, lithium hexafluorophosphate self-supply rate of greater than 98%, the core additives are independent support, relying on the plant material cycle and process synergy to form a significant cost advantage, constitute the core of the sector cycle.

On the other hand, regional matching capabilities have become the key to binding customers. With the national layout of downstream power battery production capacity, electrolyte companies can minimize logistics costs, shorten the delivery cycle, to ensure the security of the supply chain. The landing of Fuding project in Fujian is the strategic layout close to the downstream core customer cluster, which can enhance the responsiveness of the East China and South China market and consolidate the depth of customer cooperation.

After the overcapacity and price war in 2023-2024, the sector's understanding of cyclical risks has deepened significantly, and even if demand picks up, companies are no longer blindly and aggressively expanding production. Overlay semi-solid-state batteries and other new methodology routes of commercialization progress, head companies are greater inclined to optimize the stock, precision delivery increment, end inefficient projects, focus resources on high-certainty track, is becoming the sector consensus.

From horse racing to intensive farming, from day-to-day expansion to precise layout, the adjustment of Tianci materials is the epitome of the electrolyte sector from high-speed development to high-condition research, the future competition in the sector, will eventually return to the complete competition of methodology, cost and operational efficiency.