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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