Anda Technology plans to invest 1 billion yuan to build 6 new lithium iron phosphate production lines in Kaiyang County, Guiyang City

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According to the project details, Anda Technology plans to invest 1 billion yuan to build 6 new lithium iron phosphate production lines in Baianying Village, Xicheng Sub-district, Kaiyang County, Guiyang City. The production capacity of these lines will be 60,000 tons per year. Meanwhile, environmental protection facilities, raw material warehouses, sintering workshops, drying workshops, testing centers, and recirculating water systems will also be constructed. It is understood that Andah Technology entered the lithium iron phosphate sector in 2009, starting from the phosphorus chemicals industry, and has since developed into a researcher and manufacturer of new energy materials, with lithium iron phosphate battery cathode materials and their precursors as its core products. Driven by the rapid growth of the energy storage and power battery markets, Anda Technology has also been actively expanding its production capacity in recent years. The semi-annual report for 2025 shows that as of the first half of this year, Andah Technology had a production capacity of 150,000 tons per year for iron phosphate and 150,000 tons per year for lithium iron phosphate. The projects under construction included one with a capacity of 240,000 tons per year for lithium iron phosphate, one with a capacity of 450,000 tons per year for lithium iron phosphate precursors, and one for the recycling of lithium battery electrodes with a capacity of 15,000 tons per year. The “240,000 tons per year lithium iron phosphate project” is located in the development area of the Eastern New City in Nanning, Guangxi. The project will be constructed in two phases, with a total investment of 4 billion yuan ； “The “450,000 tons per year lithium iron phosphate precursor project” is also located in Baianying Village, Xicheng Sub-district, Kaiyang County, Guiyang City. With a total investment of 4 billion yuan, it will be constructed in two phases, A and B ； “The “15,000 tons per year lithium battery electrode sheet recycling project” is located in Changshun County, Qianan Prefecture, Guizhou Province, with an planned investment of 200 million yuan. In June this year, it was reported that the environmental impact assessment for Section A of Andah Technology’s 450,000 tons per year lithium iron phosphate precursor production project was officially made public; this section is capable of producing 300,000 tons of lithium iron phosphate precursors, with 12 production lines planned, and the investment amounting to 1.4 billion yuan ； Project Area B has a production capacity of 150,000 tons of lithium iron phosphate precursors; 5 production lines are planned, with an investment of 1 billion yuan, and an environmental impact assessment will be conducted later. It is worth noting that despite Andah Technology’s increasing production capacity and rising revenue, its financial performance remains under pressure, with the company remaining in a loss-making state for a long time. In the first half of this year, the company achieved operating revenue of 1.536 billion yuan, a year-on-year increase of 126.80% ； The net profit was -168 million yuan, a 52.83% increase on a year-on-year basis. On the positive side, during the reporting period, Andah Technology’s operational performance improved compared to the previous year; its overall gross margin shifted from negative to positive (rising from -9.04% in the same period last year to 0.55%), and the extent of its losses decreased. Among them, the revenue from the main product, ferric phosphate, amounted to 1.429 billion yuan, representing a year-on-year increase of 201.46% ； The gross margin was 0.65%, an increase of 14.98 percentage points year-on-year. Anda Technology stated that this is mainly due to an increase in the volume of product sales, lower costs resulting from falling raw material prices, improved bargaining power thanks to the adoption of third-generation lithium iron phosphate products as the mainstream products, as well as an increase in customer orders. It is reported that on the client side, in addition to its key clients and shareholder BYD, Andatech has also established stable partnerships with well-known companies such as CALB, Sunwoda, Pailian Technology, Zhongtian Energy Storage, and Beijing Weilan. However, Andah Technology also noted that its key customers are relatively concentrated; in the first half of this year, revenue from the top five customers accounted for 92.41% of the company’s total annual revenue. In fact, lithium iron phosphate is an industry with strong demand at present, but most companies face the same performance pressures as Anda Technology. On the one hand, prices continue to fall, and the perception of overcapacity in certain industries has become entrenched; yet in reality, much of that capacity does not actually get put into use ； On the other hand, enterprises that are unable to provide high-quality production capacity keep pouring in, exacerbating the vicious cycle in the industry. The market believes that improving the current competitive landscape can only be achieved through technological advancements, by accelerating the development of high-end production capacity and reducing low-end capacity; however, this process may take a long time. Leading companies should continue to invest in research and development to prevent being overtaken in terms of production capacity and technology.