Tsaker Chemical to build 50,000 ton per year iron (III) phosphate project

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Publish time: 28th November, 2021      Source: CCM
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  On October 8, Tsaker Chemical, the leading company in the fine chemical industry, issued an announcement that its subsidiary, Shandong Caike Materials Co., Ltd. (henceforth Caike) has received government approval to invest in a new 50,000-ton/year iron (III) phosphate product project in Dongying City, Shandong Province.

  

  The total planned investment for the new project is about RMB 250 million, and the overall planned annual production capacity is 50,000 tons. The project will bell be constructed in two phases. During the first phase, RMB 150 million will be invested in order to achieve a production capacity is 25,000 tons per year. The first phase is expected to be completed and put into production in December 2022. The second phase of the project has an investment of RMB 100 million and a planned production capacity of 25,000 tons per year. The second project phase is expected to be put into production by December 2024.

  

  It is expected that the total production capacity of Caike's iron phosphate products will reach 70,000 tons per year after it is fully completed and put into production. The project funds will be gathered from self-owned funds, bank financing, and equity financing.

  

  

  New project comes amid shortage in iron (III) phosphate

  In an industry where the supply of iron (III) phosphate is in short supply, Caike's is siezing this key moment to add its iron (III) phosphate project, which will further help the company to take advantage of development opportunities in the new energy market and consolidate Caike's strength and competitiveness in the field of iron phosphate. Benefiting from the continued spike in demand for iron phosphate, the project will boost the company's overall profitability, optimize the company's business structure, and promote the sustainable development of the company's performance and value.

  

  Since 2021, the focus of chemical companies on new energy has continued to rise. In recent news, many powerful chemical companies, including Caike, Longbai Group, Xingfa Group, etc., have begun new iron (III) phosphate projects, as the downstream demand for lithium iron phosphate is strong, and the supply gap of iron (III) phosphate, one of the main raw materials, is vast.

  

  Lithium iron phosphate battery market continues to grow

  With the rise of new energy vehicles, the production and sales of lithium iron phosphate batteries have increased significantly. According to recent data, from January to August of 2021, China's battery energy output reached 112 GWh, a cumulative increase of 201% YoY, and the cumulative output of lithium iron phosphate batteries was 58 GWh, accounting for 52% of all battery energy output, and also showing an increase of 302% YoY. The the total energy of installed batteries from January to August reached 76 GWh, a cumulative increase of 176% YoY. The total energy of installed lithium iron phosphate batteries totaled 35 GWh, accounting for 46% of all installed battery energy, and showing an increase of 339% YoY. The share of lithium iron phosphate batteries in the market is expected to continue expanding.

  

  

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