Tianci Materials bets on 160,000 tons per year of high-density lithium iron phosphate

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On May 26, Tianci Materials announced its intention to carry out preliminary preparations for a project aimed at producing 160,000 tons of high-density lithium iron phosphate per year. The total investment is expected to be no more than 2.1 billion yuan, with the construction to be carried out by its subsidiary Taizhou Tianci in Taizhou, Zhejiang. As a leader in electrolyte solutions, Tianci Materials is increasing its investment in highly compacted lithium iron phosphate precisely to capitalize on this high-growth, high-value market segment. In fact, Tianci Materials has long been involved in the field of cathode materials, adopting a strategy that involves producing iron phosphate precursors in-house and processing/recycling lithium carbonate to replenish lithium sources; this approach gives it a significant cost advantage. The company has already achieved stable production of third-generation lithium iron phosphate products, and it is currently working on achieving stable mass production of third-and-a-half/ fourth-generation products. Among them, the iron phosphate precursor is a key link that Tianci Materials focuses on developing. Leveraging its core strengths in the electrolyte business, the company has expanded into the production of iron phosphate by utilizing sulfuric acid, a by-product of lithium hexafluorophosphate manufacturing. In August 2021, it launched a 300,000-ton iron phosphate project in Yichang; this project was officially completed and put into operation on November 30, 2022. In March this year, Tianci Materials planned to further expand its facilities at the Yichang site; it intended to build a new energy materials industrial park there through its subsidiary Hubei Tianci, with construction projects including facilities for producing 1 million tons of iron sources and 300,000 tons of ferric phosphate per year. The total investment in this project is approximately 2.1 billion yuan, and it is still in the preliminary stage. According to a research report by CITIC Construction Investment Securities, Tianci Materials has established battery recycling facilities in Jiujiang, Meishan, Fuding, and Jiangmen.