Inner Mongolia Times Fulin New Materials Co., Ltd.: a project with a total investment of 6 billion yuan to produce 500,000 tons per year of lithium iron phosphate for high-end energy storage applications

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The project of Inner Mongolia Time Fortune New Materials Co., Ltd. to produce 500,000 tons per year of lithium iron phosphate for high-end energy storage applications: The builder of this project is Mongolian Fortune Time New Materials Co., Ltd.; it is located in Ordos City, Inner Mongolia, with a total investment of 6 billion yuan. According to news from Northwest Nonferrous Engineering Co., Ltd., the company recently won the bid for the \"500,000-ton per year production project of lithium iron phosphate for high-end energy storage at Inner Mongolia Time Fortune New Materials Co., Ltd. (foundation treatment works)\", with a bid amount of 100 million yuan; construction has since commenced successfully. It is reported that the developer of this project is Mongolia Fulin Times New Materials Co., Ltd., with the site located in Ordos City, Inner Mongolia; the total investment in the project amounts to 6 billion yuan. The basic construction tasks undertaken by the company include the installation of CFG piles in all key areas such as factory buildings, warehouses, office spaces, and living quarters. This project is characterized by high construction standards, a tight schedule, and a large scope of work; completion is expected by the end of April, with the results delivered to the client. Upon completion, the project will further improve the local new energy industry structure, assist in extending and strengthening the lithium battery industry chain, and continuously support the upgrading of regional industries and high-quality economic development. According to Qichacha’s equity information, Inner Mongolia Times Fulin New Materials Co., Ltd. is a wholly-owned subsidiary of Jiangxi Shenghua New Materials Co., Ltd. (hereinafter referred to as “Jiangxi Shenghua”). As reported earlier (on the evening of January 5), according to a announcement from Fulin Precision Engineering (300432), its subsidiary Jiangxi Shenghua plans to build a project in the Mengsu Economic Development Zone of Yijinhuoluo Banner, Ordos City, Inner Mongolia, aimed at producing 500,000 tons per year of lithium iron phosphate material for high-end energy storage applications. The total investment for this project is estimated to be 6 billion yuan. Furthermore, on February 4, Fulin Precision Engineering announced that, in light of the Strategic Cooperation Agreement and Share Subscription Agreement signed with CATL (300750), the two parties intend to further deepen their cooperation within the industrial chain as well as their strategic alignment, accelerate the development of their industrial infrastructure and the integration of resources, and optimize their capital structure. The announcement states that in order to enhance Fulin Precision’s advantages in the business of lithium-ion battery cathode materials as well as its overall competitiveness, the company and CATL plan to jointly increase the capital of Jiangxi Shenghua New Materials Co., Ltd., a subsidiary controlled by the company (hereinafter referred to as “Jiangxi Shenghua”). The company intends to convert its 500 million yuan in claims against Jiangxi Shenghua into an investment in increasing the company’s capital, by subscribing for an additional 406,504,065 yuan in registered capital. CATL, on its part, plans to contribute 747,141,913 yuan in cash, thereby subscribing for an additional 607,432,450 yuan in registered capital for Jiangxi Shenghua. Following this capital increase, Jiangxi Shenghua’s registered capital will rise from 1,808,980,000 yuan to 2,867,916,515 yuan. Fulin Precision’s shareholding in Jiangxi Shenghua will decrease from 79.5719% to 64.3653%, while CATL’s shareholding in Jiangxi Shenghua will increase from 18.7387% to 33.00%.