Since 2022, Xinyangfeng Agricultural Technology Co.Ltd(000902) has accelerated the pace of investment in new energy and continuously announced its investment layout in the “phosphorus resources – iron phosphate – lithium iron phosphate” industrial chain. Since 2021, many listed phosphorus chemical companies have competed to enter the new energy track, setting off an upsurge of investment in iron phosphate and lithium iron phosphate projects.
competing for entry
On the evening of January 10, Xinyangfeng Agricultural Technology Co.Ltd(000902) and Gem Co.Ltd(002340) both announced that the two sides jointly invested in the new phosphorus chemical new energy material industry chain of “phosphorus resources – iron phosphate” to create a globally competitive new phosphating new energy material industry chain of “phosphorus chemical resources – lithium iron phosphate material manufacturing – power battery recycling and reuse”.
On the evening of January 4, Xinyangfeng Agricultural Technology Co.Ltd(000902) announced that Yangfeng Chuyuan, a wholly-owned subsidiary of the company, plans to sign the investment / service agreement for investment promotion projects with Yidu Municipal People’s government to build a production line with an annual output of 100000 tons of iron phosphate and 50000 tons of lithium iron phosphate, supporting 100000 tons of refined phosphoric acid production line, with a planned total investment of 3 billion yuan.
As early as five months ago, Xinyangfeng Agricultural Technology Co.Ltd(000902) began to layout iron phosphate. On August 17, 2021, Xinyangfeng Agricultural Technology Co.Ltd(000902) disclosed the announcement on investing in the construction of 200000 tons of iron phosphate and upstream supporting projects and the announcement on establishing a joint venture with Changzhou Liyuan New Energy Technology Co., Ltd., invested 2.5-3 billion yuan to build 200000 tons of iron phosphate and related supporting projects, and officially entered the field of new energy.
The data show that industrial grade monoammonium phosphate has become one of the important raw materials of iron phosphate, the precursor of lithium iron phosphate as the cathode material of lithium iron phosphate battery. Xinyangfeng Agricultural Technology Co.Ltd(000902) is a leading enterprise in the phosphorus chemical industry chain, with a production capacity of 1.8 million tons of monoammonium phosphate (including 150000 tons of industrial monoammonium phosphate), ranking first in China. At the same time, Xinyangfeng Agricultural Technology Co.Ltd(000902) has phosphate rock assets with a design capacity of 900000 tons / year, and the parent company Yangfeng group has nearly 500 million tons of phosphate rock resources.
Phosphorus is an indispensable raw material for the preparation process of iron phosphate and accounts for the largest proportion in the preparation cost of iron phosphate. Therefore, phosphorus chemical enterprises with phosphorus resources and integrated industrial chain have inherent cost advantages for the preparation of iron phosphate.
Since 2021, iron phosphate and lithium iron phosphate projects have been invested vigorously, and many listed phosphorus chemical companies have entered the new energy track one after another.
On September 3, 2021, Chengdu Wintrue Holding Co.Ltd(002539) invested 4.595 billion yuan to build 350000 tons of battery grade iron phosphate and related supporting projects. On September 15, 2021, Guizhou Chanhen Chemical Corporation(002895) with more than 350 million tons of phosphate rock resources invested 10 billion yuan to build a “mineralization in one” new energy material recycling industry project in Fuquan City, Guizhou Province, and plans to build a 500000 T / a iron phosphate project. On December 21, 2021, Kunming Chuan Jin Nuo Chemical Co.Ltd(300505) invested 3.9 billion yuan to invest in the construction of 150000 T / a battery grade lithium iron phosphate cathode material precursor material iron phosphate and supporting 600000 T / a sulfur based sulfuric acid production project in Guangxi, and 100000 t / a battery grade lithium iron phosphate cathode material project. On December 13, 2021, Yibin Tianyuan Group Co.Ltd(002386) announced that it plans to establish a new company in Yibin, Sichuan to invest in the construction of 100000 t / a lithium iron phosphate cathode material project, and according to the actual situation, the company’s subsidiaries will support the construction of 100000 t / a iron phosphate precursor project and 80000 T / a wet process purified phosphoric acid project. The total investment of the project is planned to be 2.389 billion yuan.
trillion market scale is expected
Insiders pointed out that iron phosphate, as the key and core precursor raw material for the manufacture of battery grade lithium iron phosphate, will usher in explosive market demand in the future.
According to the data, the price of lithium iron phosphate was 38500 yuan / ton at the beginning of 2021. By the end of 2021, the price had risen to 92000 yuan / ton, an increase of 138.96%.
According to the latest notice of the Ministry of Finance and other four ministries and commissions, the subsidy for new energy vehicles in 2022 will decline by 30% on the basis of 2021. The continuous decline in subsidies has increased the pressure on battery enterprises to reduce costs, and the cost performance advantage of lithium iron phosphate battery has gradually become prominent.
Guosen Securities Co.Ltd(002736) it is estimated that the global demand for lithium iron phosphate batteries will reach 710gwh in 2025. The global demand for lithium iron phosphate for power batteries is expected to increase from 46 GWH in 2020 to 469 GWH in 2025, with a penetration rate of 37%; In 2025, the global demand for lithium iron phosphate for energy storage batteries is expected to reach 133gwh, with a penetration rate of 60%. According to the unit consumption of 25000 tons / GWH lithium iron phosphate, the demand for lithium iron phosphate cathode material is expected to reach 1.8 million tons in 2025, and the industry market space may exceed trillion in the future.
