Tianyuan shares plans to expand production of lithium iron phosphate by 2.4 billion, and partner wit

   With the breakthrough of lithium iron phosphate battery life technology, the installed capacity continues to rise, and the industrial chain has entered a trend of increasing production. On December 13, Tianyuan shares (002386.SZ) issued an announcement stating that it plans to establish a new company to invest in the construction of a 100,000-ton/year lithium iron phosphate cathode material project, as well as supporting the construction of phosphoric acid and iron phosphate projects. The total planned investment of the project is 2.389 billion. Yuan.
  This layout means that Tianyuan shares will have the corresponding project capacity of two technical routes of ternary lithium battery and lithium iron phosphate battery. It is understood that the company's planned production capacity of ternary cathode materials in 2021 is 18,000 tons; the current production capacity of ternary cathode materials is 30,000 tons and precursors are 10,000 tons, and the medium-term plan for both is 150,000 tons.
  With the sharp increase in product market prices and the gradual release of productivity benefits in emerging industries, the company's net profit attributable to shareholders of listed companies in the first three quarters of this year increased by approximately 30 times year-on-year. It is worth mentioning that in March this year, the company and CATL signed a comprehensive cooperation agreement, agreeing on a ten-year long-term contract.
  Plan to build a 100,000-ton lithium iron phosphate cathode material project .
  According to the latest announcement, Tianyuan Co., Ltd. plans to establish a new company to invest in the construction of a 100,000 tons/year lithium iron phosphate cathode material project, and according to the actual situation, the subsidiary will support the construction of phosphoric acid and iron phosphate projects.
  The main content of the above-mentioned project is to invest in the construction of a lithium iron phosphate cathode material project with an annual output of 100,000 tons, a supporting iron phosphate precursor project with an annual output of 100,000 tons, and a wet purification phosphoric acid project with an annual output of 80,000 tons. The total planned investment of the project is 2.389 billion yuan. , The source of funds is the company’s self-raising, etc., and it is estimated that the annual net profit will be 689 million yuan.
  Tianyuan said that the company's investment in the construction of lithium iron phosphate projects will help further improve the layout of the new energy industry, give full play to the advantages of industrial synergy, have a positive impact on the company's transformation and development, and will help enhance the company's future operating performance and overall strength.
  Regarding the logic of the layout of lithium iron phosphate battery related projects, some industry insiders have analyzed that new energy is the future development trend, but the future is a diversified development trend. Ternary and lithium iron phosphate are the mainstream technology routes in the future. Each battery material has its advantages.
 Public information shows that Tianyuan is one of the earliest chlor-alkali chemical companies in my country. In recent years, it has been involved in titanium chemical and lithium battery new materials through industrial transformation and upgrading. Products include polyvinyl chloride, titanium dioxide, hydrazine hydrate and other chlorine-consuming products. The company indirectly holds approximately 32% of Yibin Libao. The latter’s main business is the R&D, production and sales of lithium battery cathode materials. Currently, it has built a production line with an annual production capacity of 30,000 tons of lithium battery ternary cathode materials.
  A reporter from the Yangtze River Commercial Daily noted that the production of lithium iron phosphate batteries has been increasing rapidly recently. According to China Automobile Manufacturers Association's November power battery data, from January to November, my country’s lithium iron phosphate battery output totaled 105.3GWh, accounting for 56.0% of total output, a cumulative year-on-year increase of 275.7%, far exceeding the overall increase of power battery output by 175.5% over the same period.
  The growth of the battery terminal has led to the expansion of the entire industry chain. Zhongwei recently stated that it plans to invest 10 billion yuan to build an integrated project with an annual output of 200,000 tons of iron phosphate and lithium iron phosphate materials. In addition, Taihe Technology, Longbai Group, Fulin Precision, Chuanjinnuo, Chuanfa Lomon Others have also expressed that they will increase the production capacity of lithium iron phosphate related projects.
  Hand in hand with Ningde era to accelerate capacity expansion .
  According to data, Yibin, where Tianyuan shares is located, is seeking a "world-class lithium battery industry cluster" to build a "world power battery capital". Currently, it has formed lithium battery raw materials, battery materials, lithium batteries, application products and lithium battery recycling. The complete industrial chain.
  At the same time, Yibin and Ningde Times and other lithium battery giants have reached cooperation, Geely Times, Changying Precision, Suzhou Tianhua Super Clean, Guangzhou Guoguang Electric and Jiangsu Guotai and other listed companies have established lithium battery material manufacturing in Yibin.
  In March of this year, Tianyuan and Ningde Times signed a comprehensive cooperation agreement, which clearly stated that Ningde Times will supply 15,000 tons in 2021 and 25,000 tons in 2022. Ningde Times will purchase Tianyuan in the next ten years. Yibin Libao, a subsidiary of the joint-stock company, produces no less than 200,000 tons of cathode materials; according to the company's business plan, the output of ternary cathode materials will be 18,000 tons in 2021, and the medium-term planned production capacity of ternary cathode materials will be increased to 150,000 tons per year. .
 Since the announcement of the "hand in hand" between the participating companies and Ningde Times, the share price of Tianyuan shares has risen all the way, from about 6 yuan per share in March to 19.36 yuan per share on September 17, the highest cumulative increase of more than 200%. As of the close on December 14, Tianyuan shares closed at 12.9 yuan, an increase of 9.97% on the day, and the market value was 10.07 billion yuan.
 In terms of performance, the third quarterly report showed that Tianyuan’s operating income from January to September was 12.606 billion yuan, a year-on-year decrease of 20.19%; the net profit attributable to shareholders of listed companies was 490 million yuan, a year-on-year increase of 3090.52%.
 Regarding changes in performance, Tianyuan Co., Ltd. attributed the cause to three factors, including the sharp increase in market prices of main products, the supporting advantages of its own raw material bases and industrial synergy, and the gradual release of the productivity benefits of emerging industries of “one body and two wings”
 Industry insiders said that with the implementation of policies that advocate green energy and the concept of "carbon neutrality", the production capacity of cathode materials will be gradually released, and the industry market scale will further increase.