China’s fluoride giant
Do-Fluoride has announced the fundraising for a new Li-ion battery project,
demonstrating its plan to set up a whole industrial chain for AEV products.
China’s alternative energy market is the largest worldwide, with many companies
try to get a piece of the cake.
In
the middle of January, China’s Do-Fluoride has announced to the public, that it
will raise the money for its planned Li-ion battery production line by a private
placement. The company needed to wait for the approval by the China Securities
Regulatory Commission, which was granted one day before the announcement.
According
to the announcement, Do-Fluoride will raise slightly more than USD260 million
to invest in the new project. The company seeks to increase their technical
competitiveness against other players in China’s booming Li-ion battery and AEV
market. Besides, through the share issuance, the company can optimize and
enrich its business structure, improve the production system so as to achieve
the coordinated development of fluorine chemical industry and new-energy
industry.
The
new project is representing a further step for the company into the whole
industrial chain of AEVs. The management aims to achieve the whole range of
supply chain by providing the materials from raw lithium Hexafluorophosphate to
the end products in the AEV sector.
Do-Fluoride
stated that through this private placement, it would make full play of its
technical advantages and catch the opportunities brought by the rapid growth of
AEV industry so as to stand still in the market of Li-ion battery and related
materials.
Do-Fluoride
sees high potential in China’s AEV industry. According to market intelligence
firm CCM, China’s AEV market was indeed booming in 2017, showing a production
growth of more than 50% compares to 2016 and a sales volume increase by a
similar percentage. The biggest growth was hereby seen in the market for
battery electric passenger vehicles, whose production rose by more than 81% and
sales volume witnessed a growth exceeding 82%.
China
is the largest market for Li-ion batteries worldwide. The total installed
battery capacity of AEVs in 2017 was about 36.4GWh, up by 29% YoY. The total
installed capacity of top 10 battery companies reached 26.81GWh, representing
74% of the whole.
For
2018, it is expected that the growth of the AEV industry is slowing down,
whatsoever. A big challenge, industry players are facing is the continuously
changing subsidy policy by the government. The uncertainties that are resolving
out of it are slowing investments down and leave many manufacturers to stick to
the standard requirement instead of investing in new research and development.
For
example, In early January 2018, the government convened four ministries,
association experts and representatives of major enterprises to discuss on the
adjustment of subsidy for AEVs in 2018, intending to advance the implementation
of the subsidy standard originally expected to be launched in 2019. According
to the latest information, in 2018, the subsidy scheme for AEVs will be
elaborated further. The battery range and density will be further classified
and subsidy amount will be set accordingly.
A
researcher from CCM has stated, that “From the tendency of industrial
development, driving force originating from the policy is declining while that
from the market is growing. To expand China's AEV industry, AEV enterprises
need to improve product quality, reduce the cost, and increase the productivity
and promote the innovation of business model.”
About the company
Do-Fluoride
Chemicals is a major player in the global fluoride market, based in China
producing and selling fluoride products. Part of the product portfolio of the
company is anhydrous hydrogen fluoride, cryolite, anhydrous aluminium fluoride,
potassium fluoroaluminate, sodium fluorosilicate, and sodium fluoride. It
also provides lithium-ion battery materials, battery products, and LED
products.
All
in all, Do-Fluoride is principally engaged in the research, production and
distribution of inorganic fluoride products. The Company's cryolite products
are primarily used as a slagging medium in aluminium
electrolysis, wearproof filter of rubber and grinding wheel, as well
as slagging medium in ceramics and glass manufacturing. Its aluminium
fluoride products are mainly used as a slagging medium in aluminium
electrolysis, inhibitor in alcohol manufacturing, fusing agent of nonferrous
metal, as well as a slagging medium of ceramic glaze and porcelain enamel.
On
9 January 2018, Do-Fluoride announced that it won the National Science and
Technology Progress Award on the day before with its "high-purity crystal
lithium hexafluorophosphate (LiPF6) key technology development and
industrialisation" project. Nowadays the company is one of the world's
largest LiPF6 suppliers, taking 35% of the domestic market and 20% of the
global market.
The
company furthermore announced its re-determination as a high-tech enterprise
with a certificate valid from 2017 to 2019, granting it a favourable treatment
in corporate income taxes.
About the article
The information from this article comes from CCM, China's leading market intelligence provider for the fields of agriculture, chemicals, food and feed.
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