Duofudu shuts down one aluminum fluoride production line to expand its capacity for lithium hexafluorophosphate production to 3,000 tons per year

Thread Content

Recently, Duofuduo announced that since the shutdown for renovation of its aluminum fluoride production line in the third quarter of 2013, the annual production capacity of each such line has reached 50,000 tons, which has helped to reduce production costs and enhance the competitiveness of the products. However, due to severe overcapacity in the industry, as well as the adverse macroeconomic conditions and the weak demand in the downstream aluminum electrolysis sector, the aluminum fluoride market has remained at low levels in recent years, making operations difficult; losses in the aluminum fluoride sector have continued to increase. The company’s existing production lines have been operating at suboptimal capacity, resulting in idle production capacity. Lithium hexafluorophosphate is a key material for lithium batteries, characterized by high technology requirements, substantial investment needs, and high added value. Driven by the development of new energy vehicles, the market demand for lithium hexafluorophosphate has been rising steadily; since 2015, there has been a shortage of supply, leading to a significant increase in prices. Foreign customers from countries such as Japan and South Korea also come to China to purchase this material. At present, the company’s production capacity of lithium hexafluorophosphate can only meet about 60% of the orders placed by customers, and the demand continues to grow. To further adjust the product structure and optimize the industrial layout, the company will shut down one aluminum fluoride production line and invest in expanding a lithium hexafluorophosphate production line with an annual capacity of 3,000 tons at that site. The company will continue to reduce the production of aluminum fluoride, while keeping one production line operating normally at the headquarters.