The global market is entering the era of Lithium iron phosphate, and the transformation of Jinpu Titanium Industry leading the new energy field is just in time

Recently, Jinpu Titanium Industry Co., Ltd. (hereinafter referred to as Jinpu Titanium Industry) issued a stock subscription plan to specific targets, proposing to raise no more than 900 million yuan to increase capital for the construction of a 100000 ton/year new energy battery material precursor and thermal energy comprehensive utilization project announced in September last year.

According to data, Jinpu Titanium Industry's current main business is the production and sales of sulfuric acid based titanium dioxide powder. Its core product is titanium dioxide powder, which is mainly used in fields such as coatings, papermaking, chemical fiber, ink, plastic pipe profiles, etc. It is best-selling domestically and has extensive trade relations with countries or regions such as Southeast Asia, Africa, and the Americas.

The investment project that the company raised funds by issuing shares to specific objects this time is Lithium iron phosphate precursor material, which belongs to high-tech products in the field of efficient energy conservation and new energy recognized by the Ministry of Science and Technology of the People's Republic of China and encouraged products in the Catalogue of Industrial Restructuring (2021 version) issued by the National Development and Reform Commission. It is a product that the National Key Support High tech Fields focuses on supporting development. Jinpu Titanium Industry said that the construction of the project will absorb Iron(II) sulfate and other by-products in the production process of titanium dioxide, improve the value of the titanium dioxide industry chain, realize the transformation and upgrading of the company's industrial chain, and promote the company's high-quality development.

In recent years, global ecological and environmental issues have become increasingly prominent, and global climate change and other issues urgently need to be addressed. In 2020, China proposed the goal of "carbon peaking and carbon neutrality" for the first time at the United Nations General Assembly. The low-carbon transformation of energy driven by policies has led to explosive growth in the new energy vehicle and energy storage industries, and the upstream and downstream of the lithium battery industry chain has become a key layout direction for chemical enterprises.

Among the four major materials for lithium batteries, the number of cathode material enterprises is the largest. There are mainly two Technology roadmap, namely, ternary lithium and Lithium iron phosphate, for power battery cathode. Different from the ternary lithium battery, the synthesis of Lithium iron phosphate does not need rare materials such as cobalt and nickel, and the resources of phosphorus, lithium and iron are abundant in the earth. Therefore, Lithium iron phosphate not only has the advantages of easy exploitation of raw materials and simple synthesis process in the production link, but also has the price advantage in the sales link that is more favored by downstream manufacturers due to stable cost.

According to data from the China Passenger Car Association, the installed capacity of power batteries in Q1 2023 was 58.94GWh, an increase of 28.8% year-on-year. The installed capacity of Lithium iron phosphate battery was 38.29GWh, accounting for 65%, up 50% year on year. From only 13% of the market share in 2020 to 65% today, Lithium iron phosphate's position in the domestic power battery field has been reversed, which proves that China's new energy power battery market has entered the era of Lithium iron phosphate.

At the same time, Lithium iron phosphate is also becoming the "new favorite" of the overseas electric vehicle market, and more and more foreign automobile enterprises show their willingness to use Lithium iron phosphate battery. Among them, Carlos Tavares, CEO of Stellantis, said that Lithium iron phosphate battery would be considered for use in European electric vehicles because it is more competitive in cost. A senior executive of General Motors said that the company is also exploring the possibility of using Lithium iron phosphate battery to reduce costs. Except for whole

Post time: Jul-04-2023