Hydrogen + Storage

Xinwangda plans to invest in the Wenzhou new material industry base project

Seetao 2022-08-05 16:55
  • After the project is completed, it can achieve an annual output of 200,000 tons of high-nickel ternary cathode materials
  • The total construction investment of this project is expected to be about 11.5 billion yuan, and the total land is expected to be about 1,500 mu
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On August 4, 2022, Xinwangda Electronics Co., Ltd. and Shengtun Mining, Yongqing Technology, and Weiming Environmental Protection signed the "Wenzhou Lithium Battery New Material Industry Base Project Joint Venture Agreement" on the investment and construction of new lithium battery material projects. The company will jointly develop and construct a new lithium battery material project in Wenzhou through a joint venture with Weiming Environmental Protection, Yongqing Technology Co., Ltd., and Shengtun, to achieve an annual output of 200,000 tons of high-nickel ternary cathode materials.

The development and construction of the new lithium battery material project includes high-nickel matte refining, high-nickel ternary precursor production, high-nickel cathode material production and related supporting projects. The total project investment does not exceed RMB 19.1 billion, of which the total construction investment is expected to be about approx. 11.5 billion yuan, the total working capital requirement during the operation period after the project is put into production is about 7.6 billion yuan, and the total land is expected to be about 1,500 mu.

The project will be implemented in phases according to the actual situation. The project company's own capital contribution accounts for 30% of the total project investment. According to the company's shareholding ratio, the company invests in this project with its own capital of no more than 3.45 billion yuan. The remaining 70% of the total project investment will be contributed by the company to assist the joint venture company in financing. , if required by financing institutions, all parties shall provide corresponding long-term project financing guarantees in proportion to their shareholdings. If 70% of the total investment of the project cannot obtain project financing or the project financing is not obtained in full, Wei Ming will provide shareholder loans to solve the shortfall. Weiming Shengqing is responsible for the construction of the project, and the joint venture parties will increase the capital of Weiming Shengqing in a timely manner according to the progress of the project implementation.

Weiming Environmental Protection said that this investment is the company's first entry into the battery new material manufacturing industry. In the context of carbon peaking and carbon neutrality, with the rapid development of the new energy vehicle industry and the continuous expansion of various battery application scenarios, there is a huge market demand for lithium batteries. As the core key material of lithium battery, the improvement of its electrochemical performance and manufacturing technology is an important technology research and development focus, breakthrough and driving force to promote the popularization and application of lithium battery. High-nickel ternary batteries have obvious advantages such as high energy density, good cycle performance, high cruising range, and controllable cost, which are in line with the development trend of new energy vehicles with long battery life and high performance. In the future, the market demand for high-nickel ternary cathode materials will grow rapidly . This project helps control production costs through an integrated and large-scale manufacturing process. The project is in line with the national industrial policy and has good economic and social benefits. The production of cathode materials has certain market, technical and management risks in terms of supply of raw materials such as nickel, lithium and cobalt, cost control of production technology and process, and binding of downstream customer certification. There are certain capital, talent and technical barriers to project implementation. At present, the company has been involved in the field of high matte nickel production, has equipment R&D and manufacturing capabilities, and has smooth financing channels. The partner has reserves of raw material resources such as nickel, cobalt, and lithium and is engaged in lithium battery manufacturing, which helps to control the risk of project implementation. The project is currently in the preparatory stage and still needs to go through the pre-approval procedures such as feasibility study and environmental impact assessment. The construction period is about 2.5 years.Editor/Zhao E