Summary: In late June 2024, Hunan Yuneng announced to build several projects, including a project of 300,000 t/a FePO₄.

On 29 June, 2024, Hunan Yuneng New Energy Battery Material Co., Ltd. (Hunan Yuneng) announced that it intends to invest USD2.10 billion (RMB15.00 billion) in building projects of 500,000 t/a copper smelting, 300,000 t/a ferric phosphate (FePO₄), and 300,000 t/a ultra-long cycle and ultra-high energy density phosphate cathode material with an area of 180 hectares in the Shuanglong Park in Fuquan City, Guizhou Province.

The project will be constructed in multiple phases. Specifically, the first phase, with an investment of USD0.49 billion (RMB3.50 billion), is planned to be constructed within 24 months; it covers an area of around 46.67 hectares and it will mainly build capacity of 200,000 t/a copper smelting and joint-product of 800,000 t/a sulphuric acid, as well a 800,000 t/a steam. The sulphuric acid produced by the project is mainly used for the production of phosphoric acid (PA) and FePO₄, which will further improve the integrated product layout of Hunan Yuneng. When the first phase reaches designed capacity, it is expected to gain annual sales revenues of USD1.73 billion (RMB12.30 billion) and net profits of around USD65.95 million (RMB470.00 million), with the average annual earnings before interest and tax hitting around USD93.03 million (RMB663.00 million). Subsequent projects will be constructed in phases depending on the development of the first phase and market demand.

In order to promote the construction of the project, Hunan Yuneng will enter into a cooperation agreement with the people's government where the project is located; the local government will support the company to acquire new phosphorus ore exploration right of over 50.00 million t/a before the commissioning of the first phase of the above project and actively support Hunan Yuneng to transform the exploration right to mining right.

Hunan Yuneng's main product is lithium ferrous phosphate (LFP), and according to the data released by the company, the market share of its main product, phosphate cathode material, exceeded 30% in 2023, and its shipment had ranked first in China for four consecutive years since 2020. In order to enhance its competitiveness, Hunan Yuneng has actively expanded its production capacity of FePO₄ and phosphorus ore and in April 2024, it obtained a 1.20 million t/a phosphorus ore mining license.