First public announcement on the environmental impact assessment for Hubei Huaxing New Energy Co., Ltd.’s project to produce 240,000 tons of ferric phosphate per year along with related auxiliary facilities

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Recently, the first public announcement was made regarding the environmental impact assessment for Hubei Huaxing New Energy Co., Ltd.’s project to produce 240,000 tons of ferrophosphate per year, along with the associated auxiliary facilities; the construction site is located in the Yidu Chemical Industry Park in Hubei Province. According to the Yichang Ecology and Environment Bureau in Hubei Province, recently the first public announcement was made regarding the environmental impact assessment for Hubei Huaxing New Energy Co., Ltd.’s project to produce 240,000 tons of ferrophosphate per year, along with the associated auxiliary facilities. The construction site is located in the Yidu Chemical Industry Park in Hubei Province; the project involves the construction of new production workshops, vertical warehouses, and tank areas, as well as auxiliary facilities such as fire stations, rainwater collection tanks, and accident containment tanks. Once completed, the project will have an annual production capacity of 240,000 tons of ferrophosphate. Data shows that in the new energy battery materials industry, iron phosphate serves as a precursor material for lithium iron phosphate cathode materials. The developer of this project, Hubei Huaxing New Energy Co., Ltd., was established on March 6, 2025, with a registered capital of 600 million yuan. It is located in Yidu City, Yichang City, Hubei Province. Its business scope includes battery manufacturing, battery sales, research and development of new energy technologies, as well as the recycling and reuse of used power batteries from new energy vehicles (excluding the handling of hazardous waste). According to the equity breakdown, the company is jointly owned by Wanhua Chemical (Yantai) Battery Industry Co., Ltd., a subsidiary of Wanhua Chemical (600309), and Xingfa Group (600141), with each holding 70% and 30% of the shares respectively. Founded in 1978, Wanhua Chemical is a globally operating company in the field of new chemical materials, with its business spanning industries such as polyurethanes, petrochemicals, fine chemicals, and new materials. According to a research report previously published by Guosen Securities, Wanhua Chemical is developing its battery materials business as a second growth driver, with a focus on lithium iron phosphate and continuously graphitized anode materials. The fourth-generation lithium iron phosphate products are already in mass production, while the fifth-generation versions have been finalized and launched; by 2027, the company aims to achieve a production capacity of 1 million tons of lithium phosphate and 1 million tons of lithium iron phosphate. Xingfa Group’s main business involves the production and sales of a range of fine phosphorus-based chemical products. In recent years, the company has entered the new energy sector, establishing facilities with capacities of 100,000 tons per year for ferrous phosphate, 80,000 tons per year for lithium iron phosphate, and 100,000 tons per year for lithium dihydrogen phosphate. According to local media reports, in 2025, the 600,000-ton ferrophosphate and related industrial facilities project invested 15 billion yuan was launched in Yichang, Hubei. The aim of this project is to develop a complete industrial chain for lithium iron phosphate cathode materials; it was built through a joint venture between Wanhua Chemical and Xingfa Group.