Yongtai Technology plans to build a 200,000-ton electrolyte production facility

Thread Content

Yongtai Technology plans to build a project for producing 200,000 tons of electrolytes. On the evening of March 2, Yongtai Technology released a statement indicating that at the fifth meeting of its seventh board of directors, two resolutions were passed: to cancel the subsidiary’s project for producing 200,000 tons of electrolytes per year, and to initiate a new project for manufacturing 200,000 tons of lithium battery electrolytes in the industrial park of Binhai Development Zone in Jiangsu Province. The company stated that in order to optimize the efficiency of resource allocation and improve the layout of its production facilities, and while ensuring that existing and planned production capacities are sufficient to meet future market demands, it has decided to cancel the construction of this project. Since the initiation of this project, significant changes in the market environment and industry competition landscape have led to it remaining in its early stages as of the date of this announcement. Apart from the acquisition of land use rights, no other substantial investments have been made, nor any tangible benefits have been achieved. Cancelling this project will not have a significant adverse impact on the company’s current operations, and there is no risk of harming the interests of the company and all its shareholders, especially the minority shareholders. Looking back at previous company announcements, in August 2022, Yongtai Technology agreed that its subsidiary, Shaowu Yongtai High-Tech Materials Co., Ltd., should use its own funds amounting to 950 million yuan to invest in the construction of a project capable of producing 200,000 tons per year of electrolytes, as well as related materials and for the recycling of by-products. The company also agreed that Yongtai High-Tech would fund the purchase of land rights in the Jintang Industrial Park in Shaowu City, to be used as land for the development of this project. The construction time is estimated to be about 2 years after the land is acquired. After issuing the aforementioned announcement in August 2022, Yongtai Technology has not disclosed any further updates on the progress of this project. Until March 2, 2026, the termination of this project was announced.