Lomon Billions to enter lithium-ion battery business

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Publish time: 13th March, 2021      Source: CCM
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  According to an announcement of China's titanium white enterprise Lomon Billions, in order to implement an innovation-driven development strategy, Lomon Billions's subsidiary, Henan Baili New Energy Materials Co., Ltd, plans to invest RMB 300 million to establish a company named Henan Longbai New Material Technology Co., Ltd in Qinyang, Henan province. The new company will mainly engage in the production, marketing, as well as research and development of lithium-ion batteries, as well as the recycling of electric vehicle batteries.

  

  According to a representative of Henan Baili New Energy Materials Co., Ltd, ferrous sulfate, which is a byproduct of titanium white, can be used as a raw material for lithium iron phosphate. The company plans to develop a project for the production of lithium iron phosphate from ferrous sulfate, and as a result, the company can guarantee excellent performance, low production cost, as well as high recyclability.

  

  Lithium iron phosphate price skyrockets amid high demand for batteries

  Currently, the two main types of batteries for renewable energy vehicles are lithium iron phosphate batteries and ternary lithium batteries. With the decline of renewable energy vehicle subsidies in China, lithium iron phosphate batteries have become the primary option for many vehicle enterprises. However, due to the high demand for lithium iron phosphate batteries, the supply of lithium iron phosphate is insufficient for the current market. As a result, some key lithium iron phosphate battery enterprises have closed their businesses.

  

  The high demand of lithium iron phosphate batteries among downstream industries has also increased the price of lithium iron phosphate. Data shows that the quoted price of lithium iron phosphate in essential lithium iron phosphate enterprises was RMB 34,000/ton in November 2020. However, in January 2021, the quoted price of lithium iron phosphate increased to RMB 39,000/ton, and the quoted price of lithium iron phosphate on February 19, 2021 was RMB 43,000/ton. Under these conditions, many listed companies have increased their production in order to take up a larger market share.

  

  CNNC Hua Yuan Titanium Dioxide Co., Ltd. announces new lithium iron phosphate production project

  Another titanium white enterprise, CNNC Hua Yuan Titanium Dioxide Co., Ltd, also made an announcement that its subsidiary company Gansu Dongfang Titanium Industry Co., Ltd plans to invest in and establish a project of annual production of 500 thousand tons of lithium iron phosphate. The project will be divided into three phases, with 10 thousand tons of lithium iron phosphate production in the first phrase, 20 thousand tons of lithium iron phosphate production in the second phrase, and 20 thousand tons of lithium iron phosphate production in the third phrase. The project's goal is mainly to establish a production line of lithium iron phosphate and its supporting facilities. The total estimated investment is RMB 121 million, and the estimated annual profit of the project is RMB 528 million.

  

  After the announcement made by CNNC Hua Yuan Titanium Dioxide Co., Ltd, the Shenzhen Stock Exchange sent a letter to CNNC Hua Yuan Titanium Dioxide Co., Ltd asking for clarification regarding the purpose of the investment. On February 8, CNNC Hua Yuan Titanium Dioxide Co., Ltd replied to the Shenzhen Stock Exchange, saying that currently the company's fund is over RMB 500 million, which can completely satisfy the funding requirement during the first phase. Meanwhile, the project for the annual production of 500 thousand tons of lithium iron phosphate can not only reduce the production cost of titanium white, but also can achieve high efficiency and high production value.

  

  For more information, please check our resources on China's Li-ion Batteries market.