Fulin Precision’s 500,000-ton high-density lithium iron phosphate raw material project officially announced to be launched

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On February 3, Fulin Precision Industry (300432.SZ), a company listed on the A-share market, issued a announcement stating that it held the 31st meeting of its fifth board of directors on February 2, 2026, during which the resolution regarding the signing of agreements by its subsidiaries for the construction of a new facility capable of producing 500,000 tons per year of ferrous oxalate was approved. Specifically, Jiangxi Shenghua, a subsidiary of Fulin Precision Engineering, signed a Project Investment Cooperation Agreement with Guizhou Dalong Hui Cheng. The two parties intend to jointly invest in establishing a joint venture, which will be used as the entity to build a new facility for the production of 500,000 tons of ferrous oxalate per year. Fulin Precision Engineering stated that this move is aimed at meeting the company’s demand for high-density lithium iron phosphate precursors, as well as ensuring a stable supply of raw materials for its lithium iron phosphate business and facilitating cost optimization. According to the plan, the total investment for this project is expected to be 1.5 billion yuan. It will utilize copper smelting waste residues to produce ferrous oxalate, and it is scheduled to be completed and put into operation by September 30, 2026, with an annual production capacity of 500,000 tons, enabling the regular mass production of ferrous oxalate products. It is understood that ferrous oxalate is an important iron compound that is commonly used as a coloring agent in dyes, coatings, ceramics, glassware, etc., as well as in the production of new photoactive materials. It is also a key raw material required for manufacturing the lithium iron phosphate cathode materials used in lithium-ion batteries. From the perspective of the lithium iron phosphate battery market, lithium iron phosphate is typically classified into different generations based on the compaction density of its cathode material. Those fourth-generation and later versions with a powder compaction density of ≥2.60 g/cm³ and a electrode sheet compaction density of ≥2.75 g/cm³ are considered high-compaction-density products in the industry. Depending on the iron source, the methods for preparing highly compacted lithium iron phosphate mainly fall into the ferrous oxalate method and the lithium iron phosphate method. In this method, the principle involves mixing ferrous oxalate, a lithium source, and a phosphorus source, then sintering them in a sintering furnace under a protective atmosphere to obtain lithium iron phosphate. During the sintering process, ferrous oxalate decomposes to release gases, which inhibit particle agglomeration and grain growth. This helps to form fine and uniform lithium iron phosphate particles, thereby increasing the specific surface area of the material and enhancing the diffusion rate of lithium ions, resulting in an increase in compact density. The advantage of the ferrous oxalate method is that only one sintering step is required, the lithium ion diffusion path is more efficient, and it does not reduce production capacity; the disadvantage, however, is the higher cost. It is understood that the current price of industrial-grade ferrous oxalate ranges from 10,000 yuan to 25,000 yuan per ton. Under normal circumstances, the cost per ton using the ferrous oxalate method is more than 2,000 yuan higher than that of the ferric phosphate method. With technological advancements and the large-scale production of ferrous oxalate, the ferrous oxalate method may well become the mainstream approach. Jiangxi Shenghua, a subsidiary of Fulin Precision Engineering, is the pioneer in China of the ferrous oxalate technology route for lithium iron phosphate cathode materials. In the secondary market, on February 4th, Fulin Precision Engineering’s share price rose by 1.45 yuan per share, or 8.51%, closing at 18.49 yuan per share; its current total market value is 31.61 billion yuan.