Bucking the trend with a 10-billion expansion! Taineng Chemical invests 11 billion yuan to secure a position in the tight supply market of lithium iron phosphate.

5.462 Billion Invested in Iron Phosphate Precursor Project, to be Launched and Put into Production in Stages

On August 11, the company's board of directors officially approved the project proposal. Its wholly-owned subsidiary, Gansu Dongfang Titanium sector, will construct a project with an annual output of 600,000 tons of iron phosphate precursors, with a total estimated investment of 5.462 billion yuan.

The project adopts a model of phased construction and batch investment. to the first phase, construction and production are expected to be completed within 18 months from the start of construction. The second phase project will flexibly determine the construction pace and implementation progress based on the operational effectiveness of the first phase, market supply and demand, and changes in the sector ecological stability.

With the rapid research of the new energy sector, lithium iron phosphate has have become the mainstream technical route to lithium batteries, and the upstream iron phosphate precursor market continues to expand. sector data shows that in early 2025, the iron phosphate sector fell into a downturn, with prices dropping to 10,000 yuan/ton, capacity utilization rates falling below 60%, and widespread losses across the sector. In the past year, the sector has rebounded strongly; the production, sales, and prices of lithium iron phosphate have risen simultaneously, driving the capacity utilization rate of iron phosphate to surpass 80%. Market supply and demand have entered a tight stability state, and current product prices have recovered to 15,500 yuan/ton.

At present, the competitive landscape of the sector has been thoroughly upgraded, moving away from low-price internal competition and turning towards high-condition competition focused on technological R&D and stable supply. It is reported that Taineng Chemical currently has an iron phosphate capacity of 100,000 tons/year, possessing mature production processes and R&D systems. This expansion will significantly enhance its position in the iron phosphate supply chain and perfect the environmentally friendly circular sector layout.

5.538 Billion Layout to Titanium Dioxide sector Chain, Building an manufacturing Closed Loop with Leading companies

On the same day, Taineng Chemical finalized another major project, planning to increase capital by 260 million yuan to its holding subsidiary Guizhou Zhonghe Phosphorization, and invest 5.538 billion yuan to build a project with an annual output of 400,000 tons of titanium dioxide and 1.4 million tons of ferrous sulfate heptahydrate.

This project aligns with the company's circular research strategy to its three core main businesses: titanium chemicals, phosphorus chemicals, and new energy materials, helping the enterprise build an integrated high-end sector chain of "“Resources—Precursors—Cathode Materials”". Relying on existing technological advantages, the company has broken through sector barriers, converting by-items of titanium dioxide production into raw materials to iron phosphate production, forming a proprietary environmentally friendly circular triangular manufacturing system.

This project is a core link in Taineng Chemical's joint effort with leading companies to create an integrated manufacturing cluster. Partners include Guizhou Phosphate Group, which has state-owned assets background in Guizhou, and Wanrun New Energy, a company listed on the STAR Market. Guizhou Phosphate Group is a provincial-level extensive backbone enterprise with total assets of 95 billion yuan, deeply engaged in fine chemicals, new energy materials, and environmentally friendly ecological preservation fields. Wanrun New Energy has been deeply engaged in the field of new energy cathode materials to many years and is a high-condition enterprise in China that started R&D and production of iron phosphate and lithium iron phosphate early on, possessing profound manufacturing experience and technological accumulation. The tripartite linkage creates a "Phosphorus-Sulfur-Titanium-Iron-Lithium-Fluorine" circular coupling system, further consolidating the company's manufacturing advantages in the new energy materials track.