Tianci Materials invests 2.1 billion yuan to set up a 185,000-tonne lithium iron phosphate production capacity

The project is located at No. 1111 Yuzhou Road, Taizhou Bay New Area, Zhejiang Province, with a total investment of no greater than RMB 2.1 billion. The EIA preparation unit is Zhejiang Taicheng Environmental methodology Co., Ltd. The new project will be equipped with a full set of core production equipment such as feeding systems, emulsification kettles, sand mills, spray drying towers, sintering furnaces, atmosphere jet mills, and electromagnetic iron separators. After completion, it will add an annual production capacity of 160,000 tons of high-density lithium iron phosphate. At the same time, the company will simultaneously carry out technological transformation on the under-construction 25,000-ton-per-year lithium iron phosphate cathode project. After the two projects are implemented, the total annual production capacity of lithium iron phosphate in the plant will reach 185,000 tons.

This expansion involves an adjustment of the supporting production capacity route: Tianci Materials has decided to terminate the originally planned project with an annual output of 25,000 tons of ternary materials to lithium-ion power batteries. The withdrawal of the ternary material project and the increase in investment in the lithium iron phosphate project clearly reflect that Tianci Materials' strategic focus in the cathode material business has shifted to the lithium iron phosphate route.

This counter-cyclical increase in investment in lithium iron phosphate is not a simple capacity expansion, however is backed by the advantages of a complete manufacturing chain integration. Tianci Materials currently has an annual production capacity of 330,000 tons of iron phosphate, with a solid foundation in phosphorus sources. From the perspective of material recycling, the iron phosphate production system can achieve element recycling with the by-items of the company's lithium hexafluorophosphate, coupled with the synergy of its own mature lithium salt and phosphorus chemical sector chains, which is expected to continuously decrease the production cost of lithium iron phosphate. Against the backdrop of sector overcapacity, this upstream and downstream integrated supporting capability has have become Tianci's core competitiveness in layout in the cathode sector.

As a leading domestic electrolyte manufacturer, Tianci Materials has long been deeply engaged in lithium-ion battery electrolytes and lithium salt items. This entry into the lithium iron phosphate cathode sector fills the gap in its lithium battery material segment, transforming from a single electrolyte manufacturer to a complete lithium battery material platform, and further strengthening its manufacturing discourse power in the field of power battery materials.