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· Chongqing Zhongrun Chemical is building a project in the Changshou Economic Development Zone to produce 320,000 tons per year of NMP, 300,000 tons per year of methylamine, 100,000 tons per year of DMF, 5,000 tons per year of carbon nanotubes, as well as to utilize hydrogen on an integrated basis. Zhongrun Chemical is a manufacturer of lithium battery solvent NMP. The company was established in 2016 with a registered capital of 190 million yuan. Zhongrun Chemical has two production bases in Chongqing and Huizhou, Guangdong. It currently has an annual production capacity of 100,000 tons for NMP synthesis and recycling; it is actively expanding its capacity for NMP and NVP to 150,000 tons per year, with the goal of becoming the largest NMP manufacturing company in the country. The company also plans to build a second NMP production facility in Daya Bay. The full Chinese name for NMP is N-methylpyrrolidone; its main raw material is BDO, which is converted into GBL through high-temperature dehydrogenation reactions, and then NMP is synthesized from GBL. Due to its advantages such as good chemical stability, good thermal stability, high boiling point, low viscosity, non-corrosive properties, and low volatility, it is widely used as a cathode auxiliary material, as well as in the solvents for conductive paste in lithium batteries. There are five key factors that constrain the development of the NMP industry. Previously, Ding Longqi, chairman of Zhongrun Chemical, discussed the current situation and future development of the lithium battery solvent NMP industry, stating that there are five factors that hinder the growth of this industry: first is the Yangtze River Protection Law, which prohibits the construction or expansion of chemical parks and chemical projects within one kilometer of the banks of the Yangtze River and its tributaries ； Secondly, NMP is classified as hazardous waste and is subject to stricter controls; for example, the Jiangsu Provincial Department of Environmental Protection has issued relevant regulations to enforce more stringent safety and environmental protection measures ； Thirdly, the expansion cycle for NMP synthesis is long; it is difficult for chemical companies to obtain approval for such projects, and the construction period is lengthy, which makes it impossible to meet the rapidly increasing demand in the short term ； Fourth, the production of lithium-ion batteries is expanding at a rapid pace; in the era of TWh, the new energy power battery industry is set to grow by 10 times over the next 5 years ； Fifth, the production capacity of biodegradable plastics PBAT and spandex PTMEG has surged, leading to a shortage in the upstream raw material BDO. Overall, affected by factors such as the supply of raw material BDO, equipment maintenance, and environmental regulations, the capacity utilization rates of NMP manufacturers are generally low, ranging from 50% to 88%. Moreover, it is difficult to obtain approvals for new factories, and the approval process takes a long time; as a result, these new facilities cannot meet the rapidly increasing demand in the short term. Yahua Consulting previously noted that on the afternoon of July 22, the signing ceremony for major projects at the 4th China Western International Investment and Trade Fair was held at the Chongqing Yuelai International Conference Center. Projects such as the NMP new materials integration project in Changshou District were included in the centralized signing ceremony, with contracts bringing in 9.1 billion yuan in investment. The investment in the NMP new material integration project amounts to 2.9 billion yuan, with Chongqing Zhongrun Chemical Co., Ltd. as the investor. The project plans to build a facility in Changshou District for the production of 320,000 tons per year of NMP, 300,000 tons per year of methylamine, 100,000 tons per year of DMF, 5,000 tons per year of carbon nanotubes, as well as for the comprehensive utilization of hydrogen.