CCM: Zhejiang Yongtai to extend supply chain and march into fluorine-enriched lithium salt segment 09-23-2016

On 21 June, 2016, Zhejiang Yongtai Technology Co ., Ltd. (Zhejiang Yongtai) announced the plan to partner with Fujian Shaowu Yongjing Chemical Co., Ltd. (Fujian Yongjing), Shaowu Jinghe Investment Management Centre (Jinghe Investment) and Fuzhou Yingke Hengtong Venture Capital Centre (Limited Partnership) (Yingke Hengtong), to establish a joint venture (JV) in the Shaowu Jintang Industrial Park.



Source: Baidu


Accordingly, the JV was temporarily named as Shaowu Yongtai High-Tech Materials Co., Ltd., with a registered capital of USD15.18 million (RMB100 million). Of this,


  • Zhejiang Yongtai - USD9.11 million (RMB60 million), 60% of the total
  • Fujian Yongjing - USD2.28 million (RMB15 million), 15%
  • Jinghe Investment - USD758,852 (RMB5 million), 5%
  • Jingke Hengtong - USD3.04 million (RMB20 million), 20%


The JV is aimed at constructing a fluorine-enriched lithium salt project, capacity designed to reach 6,000 t/a (lithium hexafluorophosphate - LiPF6) and 2,000 t/a (lithium bis(fluorosulfonyl)imide - LiFSI), according to CCM’s research.


LiPF6 and LiFSI are raw materials used mainly in Li-ion battery electrolyte segment. The capacity layout activity by Zhejiang Yongtai indicated that the company would march into Li-ion battery industry which is now developing rapidly, to expand its downstream market and build new profit growth points.




Thanks to favourable policies and strong consumers’ confidence, the alternative energy vehicle market maintains rapid and stable development: production and sales both increase by 100%+ annually. This also brings broad market space to Li-ion battery and related key materials.


Particularly in regard to LiPF6, its price has sharply risen by nearly 400%, driven by the short supply. Now it remains at USD60,708/t (RMB400,000/t). CCM expects the figure to maintain high, as LiPF6 supply is in short in the context that production capacities for alternative energy vehicle and Li-ion battery are put into operation continuously.


LiFSI, as a new fluorine-enriched lithium salt, features with advantages carried by both LiPF6 and lithium tetrafluoroborate (LiBF4), and works in solving technological problems such as short power Li-ion battery lifespan (especially under high temperature) and safety risks.


Owing to big production difficulties and high production costs, LiFSI is now just used as an additive in electrolyte, addition at about 10-30%, and in premium-marketed Li-ion battery at small quantity. However, as breakthroughs are made in key technology, substitutions of traditional lithium salts will be achieved and power Li-ion battery performance will be upgraded. This is a broad market prospect.


“We have been involved in developing production process for fluorine-enriched lithium salts for years,”  stated Zhejiang Yongtai, “Now we have finished the independent R&D of production processes and technologies for LiPF6 and LiFSI, which have been recognised by some clients already. This is a foundation for the launch of new products.”


Notably, partner Fujian Yongjing in this JV has rich knowhow about fluorochemical production and has capability to ensure raw material supply. Founded in 2007, it is dedicated to production of fine fluorochemicals, portfolio spanning high purity and ultra clean hydrofluoric acid (30,000 t/a, incl. 6,000 t/a for UP-SS grade), electronic grade sulphur hexafluoride (500 t/a), high purity carbon tetrafluoride (500 t/a), and high purity ammonium fluoride solution (3,000 t/a).

  

This article comes from Fluoride Materials China Monthly Report 1606, CCM

 



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Tag: fluoride  Li-ion battery  LiPF6

 

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