Wanhua Chemical’s 100,000-ton lithium iron phosphate project has been officially approved

The official website of Wanhua Chemical has published a draft of the environmental impact assessment report for the 100,000-ton-per-year lithium iron phosphate production project in the first phase of Wanhua Chemical (Haiyang) Battery Materials Technology Co., Ltd.’s Green Energy Industrial Park, seeking public comments. Project Name: Phase I of Wanhua Chemical’s Green Energy Industrial Park – 100,000 tons per year lithium iron phosphate production facility
Project Owner: Wanhua Chemical (Haiyang) Battery Materials Technology Co., Ltd.
Location: Wanhua Chemical Green Energy Industrial Park, Haiyang City, Yantai Province, Shandong Province
Project Overview: A facility capable of producing 100,000 tons per year of battery-grade lithium iron phosphate, along with the necessary supporting infrastructure. Upon completion of this project, the production capacity will be 100,000 tons of lithium iron phosphate per year. The project was approved for registration by the Haiyang City Development and Reform Bureau on December 20, 2024. It will be constructed in two phases: Phase 1 will involve the construction of a facility with an annual production capacity of 50,000 tons of lithium iron phosphate along with the necessary supporting facilities, while Phase 2 will also involve the construction of a facility with an annual production capacity of 50,000 tons of lithium iron phosphate and its associated supporting facilities. Two months earlier, on November 8, 2024, Wanhua Chemical’s official website published the information regarding the first environmental impact assessment for the project to produce 100,000 tons of lithium iron phosphate per year as part of the first phase of Wanhua Chemical’s new generation of battery material industrial park. Project Name: Phase I of Wanhua Chemical’s new generation battery materials industrial park – project for producing 100,000 tons of lithium iron phosphate per year.
Project Owner: Wanhua Chemical (Yantai) Battery Industry Co., Ltd.
Location: Longshan Sub-district, Haiyang City, Shandong Province.
Nature of the Project: New construction project.
Summary: The capacity of this project is to produce 100,000 tons of lithium iron phosphate per year, with an annual operating time of 8,000 hours.

Two 100,000 tons/year lithium iron phosphate plants? Specifically, Wanhua Chemical (Haiyang) Battery Materials Technology Co., Ltd. (Wanhua Haiyang Battery) was established on December 06, 2024. It is located in the comprehensive office building of the Donghaifa Sweater Industry Innovation Park, south of Haixin West Road and Longfeng Road, in Longshan Sub-district, Haiyang City, Yantai Province. It is a wholly-owned subsidiary of Wanhua Chemical (Yantai) Battery Industry Co., Ltd. Furthermore, the environmental impact report released on January 2, 2025, clearly states that, in accordance with the \"Procedures for Public Participation in Environmental Impact Assessment\" (Order No. 4 of the Ministry of Ecology and Environment), Wanhua Haiyang Battery carried out the first disclosure of environmental impact information via an online platform on November 8, 2024. This aligns with the information made publicly available on November 8, 2024, regarding the first phase of Wanhua Chemical’s new battery materials industrial park, which is designed to produce 100,000 tons of lithium iron phosphate per year; in other words, the two could refer to the same project.

Why use lithium iron phosphate in the layout? Currently, energy shortages and environmental pollution are becoming increasingly severe, and people’s awareness of energy conservation and environmental protection is growing. Governments are paying close attention to the development of new energy technologies and new energy vehicles, which have become the direction for the growth of the global automotive industry. As the power battery materials that serve as the \"core\" of new energy vehicles and electrochemical energy storage, lithium battery materials will play an extremely important role in the wave of industrialization of new energy vehicles. As the best choice for cathode materials in power and energy storage batteries at present, lithium iron phosphate boasts significant advantages: it offers excellent safety performance and cycle life. Coupled with lower production costs resulting from large-scale manufacturing, lithium iron phosphate has become the preferred cathode material for new types of automotive power batteries and energy storage batteries. The classification and comparison of cathode materials are as follows: Data shows that from January to November 2024, the installation volume of power batteries in China continued to grow at a rapid pace. Among them, the installed capacity of lithium iron phosphate batteries reached 348 GWh, accounting for 73.6% of the total installed capacity, with a year-on-year increase of over 51.5% ； The installed capacity of ternary lithium batteries was 124.7 GWh, accounting for over 26%, with a year-on-year increase of 13.7%. It reflects the market’s high recognition of the performance of lithium iron phosphate batteries and the continuous growth in demand for them. The product of the Wanhua Haiyang battery production project is battery-grade lithium iron phosphate, which is a key raw material for battery cathode materials. According to the \"Guidelines for Industrial Structure Adjustment (2024 Edition)\", the proposed project falls under Category 19 of the \"Encouraged\" category, specifically sub-item 11 for \"Light Industry\", which includes positive electrode materials such as ternary and multi-component materials as well as lithium iron phosphate, negative electrode materials such as mesophase carbon microballs and silicon carbide, single-layer and triple-layer composite lithium-ion battery separators, and electrolytes and additives such as ethylene carbonate fluoride (FEC).