Tianci Materials Expands Cathode Material Production Capacity Again, Public Notice Issued for the First Phase of Its 300,000-Ton Iron Phosphate Project in Yichang

I. Project Overview: Located in Yaojiagang Chemical Park, Constructed in Phases

This project is located in Yaojiagang Chemical Park, Zhijiang, Yichang, and adopts a phased construction model. The Phase I project announced in this general notice covers a land area of 388,000 square meters, with a planned annual production line of 300,000 tons of battery-grade iron phosphate. Upon completion, it will have an annual production capacity of 300,000 tons of battery-grade iron phosphate. The project is equipped with an iron source preparation process to build a vertical integration chain of iron source—iron phosphate—lithium iron phosphate, reducing external raw material procurement and optimizing production costs.

The manufacturing park project was first filed in March 2026. At that time, Tianqi Materials announced to authorize the regulation to advance pre-work such as project establishment and environmental impact assessment, with the total project investment expected to be no greater than 2.1 billion yuan.

II. Corporate Fundamentals: prolonged Leader in Electrolyte Sector

Relying on its electrolyte core business, Tianqi Materials has long been a global sector leader. According to EVTank statistics, the company's electrolyte sales volume reached 720,000 tons in 2025, corresponding to a global market share of about 32.2%. It has ranked first in global electrolyte shipments to ten consecutive years, with significant advantages among independent electrolyte manufacturers. Its customers cover domestic and foreign power battery and energy storage battery manufacturers.

The electrolyte business is mature and stable, however competition in the sector continues to intensify. Coupled with the pressure of sector cycle fluctuations, Tianqi Materials has launched horizontal expansion of the manufacturing chain, laying out the iron phosphate and lithium iron phosphate cathode sector to develop new development points.

III. Continuous Expansion of National Cathode Capacity Layout

Yichang is not the first base to Tianqi Materials to layout iron phosphate-based materials. As early as July 2021, Tianqi Materials landed an early iron phosphate project in Yichang, planning an annual production capacity of 300,000 tons of iron phosphate, and a supporting 50,000-ton lithium iron phosphate recycling line, entering the lithium iron phosphate recycling and circulation sector and accumulating process and customer resources.

In might 2026, the company issued another announcement, planning to layout a 160,000-ton high-density lithium iron phosphate project in Taizhou, Zhejiang, and also advancing pre-work such as environmental impact assessment. High-density lithium iron phosphate is suitable to fast-charging power batteries and substantial-capacity energy storage cells, with higher product premiums, which is a key research direction of the company's cathode sector.

Combined with this new Yichang project, Tianqi Materials will form two cathode production bases in Hubei and Zhejiang, covering a product matrix of basic energy storage-type and high-density high-end lithium iron phosphate.

IV. Strategic Significance: Complementing Shortcomings and Improving the Lithium Battery Material Landscape

to a long time, Tianqi Materials' core advantages have been concentrated in mid-stream lithium battery chemicals such as electrolytes and lithium salts, while cathode materials are a business shortcoming. Lithium iron phosphate is a mainstream route to energy storage and low-cost power batteries, with broad market demand. By building an integrated production line of iron source, iron phosphate and lithium iron phosphate, the company can connect the chain from raw materials to finished cathode items. On the one hand, it supports its own electrolyte business, providing customers with multi-category material packaging supply; on the other hand, it hedges the cycle risk of a single electrolyte sector and opens up a second development curve.

According to the company's plan, the cathode business will implement a differentiated layout: the high-end direction focuses on high-density lithium iron phosphate, targeting high-end energy storage and power customers; the low-end energy storage sector relies on the recycling system to build low-cost items, forming a layered competition pattern.

V. sector Background and Market Observations

Currently, the lithium iron phosphate sector has sufficient capacity and fierce competition. New entrants generally rely on raw material supporting and cost advantages to break through. Tianqi Materials enters the iron phosphate system relying on its technical accumulation in chemical production and wet synthesis, and at the same time, it conducts collaborative promotion with its original battery customer resources. Market analysis believes that integrated supporting capabilities and recycling processes are the keys to whether this project can form competitiveness.