Tianjin Guoan Mengguli New Materials invests 920 million yuan to build a 30,000-ton/year cathode material production facility

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On February 9, Tianjin Guoan Mengguli New Materials Technology Co., Ltd. issued a statement stating that the company plans to invest 928,575,500 yuan in building a project aimed at producing 30,000 tons of lithium-ion battery cathode materials per year. Of this, the first-phase project is planned to require an investment of 736,862,900 yuan, while the second-phase project is planned to require an investment of 191,712,600 yuan. Upon completion of the project as a whole, it is expected to achieve an annual production capacity of 5,000 tons of high-voltage lithium cobalt oxide, 10,000 tons of NCA materials, and 15,000 tons of ultra-high-nickel ternary materials. Engie said that this project involves a certain period of capacity building, and the market prices for cathode materials used in lithium-ion batteries are highly volatile. If the project does not generate benefits at the expected pace, or if factors such as fluctuations in product prices result in economic benefits that fall short of expectations, and these cannot offset the depreciation costs associated with the new fixed assets, then the construction of this project will have an impact on the company’s financial performance.