Select Language:
Shares of Sichuan Development Lomon increased following the announcement of a plan to invest approximately CNY362 million (around USD50.8 million) in constructing a new lithium battery raw materials plant. This marks the second lithium dihydrogen phosphate project revealed by the company in less than four months.
After gaining as much as 8% earlier today, the stock closed up by 3.7%, reaching CNY11.02 (USD1.57) per share. The overall market in Shenzhen saw a 2% rise. Despite this rebound, the stock has declined by 24% since the end of last year.
The new plant is set to be built in the Deyang-Aba Ecological Economic Industrial Park in Mianzhu, Sichuan Province. It will have an annual capacity of 100,000 tons of lithium dihydrogen phosphate, with construction expected to take a year.
Lithium dihydrogen phosphate, which is in short supply, is a crucial raw material for producing high-density lithium iron phosphate (LFP). Batteries made from this type of LFP offer higher energy density and superior fast-charging capabilities compared to standard LFP batteries.
Compared to the more common ternary lithium batteries used by global electric vehicle manufacturers, LFP batteries are more affordable, safer, and environmentally friendly.
The demand for lithium dihydrogen phosphate is booming as the market for lithium batteries expands, leading to increased need for upstream raw material production. The company highlighted this growth in demand as a key driver behind its expansion plans.
In early July, the company announced a joint venture with Fulin Precision to establish a plant within the same industrial park. This facility aims to produce high-density LFP and its main raw materials—including lithium dihydrogen phosphate and ferrous oxalate—with an annual capacity of 100,000 tons each.
Fulin Precision’s unit, Shenghua New Material, is a major supplier of LFP cathode materials to leading Chinese battery manufacturer, Contemporary Amperex Technology.
The company has been increasing its footprint in the lithium battery materials sector by harnessing its phosphate mining resources and expertise in phosphorus chemical manufacturing to support the fast-growing new energy industry.
As of the end of last year, annual production capacity for LFP had reached 60,000 tons, with an additional 40,000 tons under development. Its iron phosphate capacity was 150,000 tons, according to the latest annual earnings report.
ChatGPT
Perplexity
Gemini AI
Grok AI
