Dongfang Zirconium Industry’s Jiaozuo Dongzirun New Materials project involves the investment in building a facility capable of producing 10,000 tons per year of high-purity composite zirconia suitable for use in new energy batteries

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Recently, Dongfang Zirconium Industry announced that with the rapid development of the new energy sector, there is an increasing demand in the market for high-performance batteries. To seize industrial opportunities and strengthen its technological leadership, the company has agreed to have its wholly-owned subsidiary, Jiaozuo Dongzircon New Materials Co., Ltd., invest in the construction of a facility capable of producing 10,000 tons per year of high-purity composite zirconia suitable for use in new energy batteries. The announcement states that the total investment in this project is 300 million yuan; it will be constructed in Jiaozuo, Henan, with a construction period of 32 months, and the project will be carried out in two phases. At present, the preliminary approval procedures required for the first phase of the project, such as project registration, environmental impact assessment, construction planning permits, and construction licenses, have been completed. The company will proceed with the construction of a production line for high-purity composite zirconia with an annual capacity of 5,000 tons for this first phase; the construction of the second phase will be initiated later, depending on market demand and the progress of business activities. Dongfang Zirconium stated that this new project is aimed at expanding into downstream areas, thereby creating a cohesive development framework with the 60,000-ton per year production facility for new energy battery-grade zirconium oxychloride operated by its subsidiary, Qinyang Dongzircon New Materials Technology Co., Ltd. This layout will enhance the company’s industrial collaboration in emerging application areas, creating business growth points with high added value. It is reported that in November 2025, Dongfang Zirconium announced that, in order to seize the development opportunities in the zirconium industry and further enhance its presence in emerging application areas within this sector, the company approved its wholly-owned subsidiary, Qinyang Dongzircon New Materials Technology Co., Ltd., to invest in a project aimed at producing 60,000 tons per year of zirconium oxychloride suitable for use in new energy batteries, as well as 12,000 tons per year of highly pure oxides resulting from the separation of zirconium and hafnium. The total investment in this project is 737 million yuan, and it will be constructed in the Economic and Technological Development Zone of Qinyang City, Jiaozuo, Henan Province. Construction is scheduled to begin in January 2026. The project is planned to be constructed in two phases, with Phase 1 involving the construction of a facility capable of producing 35,000 tons per year of high-purity zirconium chloroxide ； In the second phase, facilities will be built for the production of 25,000 tons per year of high-purity zirconium chloroxide and 12,000 tons per year of oxides (of which 2,000 tons per year will be nuclear-grade zirconium oxide), as well as processes for the separation of zirconium and hafnium along with associated workshops and other structures. According to available information, Dongfang Zirconium is a high-tech enterprise dedicated to the research, development, production, and sales of zirconium-based products. It possesses several large-scale manufacturing facilities, and its product portfolio includes zirconium oxychloride, zirconium dioxide, composite zirconia, as well as zirconia ceramic components. In recent years, the company has continued to expand the use of zirconium-based materials in emerging fields. Its zirconia powder is already used as an additive in ternary cathode materials, and the zirconia samples it develops for solid-state battery electrolytes have received initial approval for testing by some manufacturers of solid-state battery materials.