Tinci Materials Electrolyte Expansion Project Signed in Liyang, Jiangsu

On the afternoon of June 15th, the signing ceremony of Tinci Materials (002709) annual production capacity of 200,000 tons of lithium battery electrolyte expansion project was held in Liyang, Jiangsu.

It is reported that on February 2, 2018, Tinci Materials signed an investment agreement with the Nandu Town Government, and established Jiangsu Tinci High-tech Materials Co., Ltd. in April of the same year. "And the "High-efficiency and high-quality benchmark", the first phase of the project started construction in Nandu Town in May 2019, and will be completed and accepted in January 2022. The second phase of the project is planned to cover an area of 100 mu, with a planned annual output of 200,000 tons of lithium battery electrolyte. It mainly provides supporting facilities for world-class lithium battery companies such as Jiangsu Times, SAIC Times, Nanjing LG, Nanjing Guoxuan, and Zhongxinhang.

Xu Jinfu, chairman and general manager of Tinci Materials, said that the Jiangsu Tinci project will focus on advantageous resources, fully promote the implementation of the project, provide supporting services for mainstream battery companies, and strive to make due contributions to the economic and social development of Liyang with first-class performance.

According to the data, Tianci Materials has had the largest market share in the electrolyte field for several consecutive years. At the same time, the company has deployed the production capacity of core raw materials for electrolytes such as lithium hexafluorophosphate and lithium bisfluorosulfonimide, with a complete industrial chain and significant integrated cost advantages.

At the beginning of June, Tinci Materials also continuously changed the dynamics of two major projects, and the project will add 400,000 tons of electrolyte production capacity. According to the data, since the relevant land scale of Zhaoqing Tinci cannot meet the company's future electrolyte production capacity planning needs, the company will set up a wholly-owned subsidiary Jiangmen Tinci High-tech Materials Co., Ltd. in Jiangmen, Guangdong Province to use self-raised funds to invest in the construction of "annual production capacity of 200,000 yuan". Tons of lithium-ion battery electrolyte project and 100,000-ton lithium-ion battery recycling project”, and terminated the establishment of a wholly-owned subsidiary Zhaoqing Tinci to invest in the construction of “annual output of 200,000 tons of lithium-ion battery electrolyte project”.

In addition, on the same day, Tinci Materials also announced that the company intends to merge the construction content of the first and second phases of the lithium battery and fluorine-containing new material project with an annual output of 350,000 tons, and at the same time remove the vinyl sulfate products in the original first phase of the project. The production base is under construction. After this change, the name of the project was changed to "annual production of 243,000 tons of lithium batteries and new materials containing fluorine". The total investment of the project is 2.654 billion yuan. The project will add 200,000 tons of electrolyte and 20,000 tons of difluorosulfonic Lithium imide, 3,000 tons of hexafluoropropylene, and 20,000 tons of fluoropolymer materials.

Battery Network noticed that Tianci Materials had previously stated that the production capacity of the company's electrolyte core additives will continue to increase in the next two years. As the self-supply ratio of core materials gradually increases to more than 90%, the company's electrolyte costs will be controlled. At a lower level, the company hopes that when the price fluctuates greatly, it can still control the net profit per ton of about 10,000 yuan.

Soochow Securities also analyzed a recent research report that Tianci Materials will create an integrated layout of "sulfuric acid-hydrofluoric acid-lithium fluoride/phosphorus pentafluoride-hexafluoride-electrolyte", and lithium fluoride, pentafluoride and pentafluoride will be built in the second half of 2022. Phosphorus production capacity has been put into operation one after another, and upstream hydrofluoric acid and sulfuric acid recycling production lines have been gradually opened to realize the integrated layout of the vertical industrial chain. The company's self-supply ratio of hexafluoride is close to 100%, and the production capacity of VC, FEC, DTD and other additives is under construction, and the self-supply ratio has increased. According to estimates, the company's liquid hexafluoro cost is 30,000 yuan/ton lower than the solid cost, and 50,000 yuan/ton lower than that of new entrants in the industry. The proportion of superimposed additives and LIFSI self-supply has increased. Even under the pessimistic hexafluoro price assumption, the company's electrolyte The profit is still expected to remain around 10,000 yuan/ton, and the cost advantage is obvious.