Xinyangfeng Agricultural, a Chinese company involved in the research, development, production, and sales of fertilizers, began a 200,000 t/a iron phosphate project in 2021. During the first phase of the project, Xinyang Agricultural cooperated with Changzhou Lithium Power, a Chinese company engaged in battery production, aiming for a development capacity of 50,000 t/a of iron phosphate. This first project phase is ongoing, and the project is estimated to be completed during the spring. For the second phase of the project, Xinyangfeng plans to cooperate with GEM, a Chinese company engaged in recycling and urban mine exploitation, in order to reach a production capacity of 150,000 t/a of iron phosphate.

On February 15, Xinyangfeng underwent investigations from many institutions in China such as ICBC Credit Suisse, Lombarda China Fund, as well as China Universal Asset Management. According to Xinyangfeng, its current projects for iron phosphate and lithium iron phosphate production include two production bases in Zhongxiang and Yidu.

Xinyangfeng with iron phosphate projects in both Zhongxiang and Yidu

The program in Zhongxiang includes a 200,000 t/a of iron phosphate production, as well as the lithium iron phosphate project with GEM described above. As for the 50,000 t/a iron phosphate production goal that makes the first phase of 200,000 t/a iron phosphate project, the is expected in March. In the second phase of the project, 150,000 t/a of iron phosphate production capacity will be built and divided into several production lines. Furthermore, the prelaunch of the first production line is expected in August.

The program in Yidu includes 100,000 t/a of iron phosphate production and 50,000 t/a of lithium iron phosphate production. The prelaunch of a 100,000 t/a iron phosphate project will occur between August and September. The company expects to achieve 300,000 t/a of iron phosphate production by next year.

Regarding the first phase of the company's 200,000 t/a iron phosphate project in Zhongxiang, the project received Environmental Impact Assessment (EIA) Ratification in December 2012. Furthermore, the energy conservation of the project was approved by evaluation experts on January 19, 2022. Currently, the first phase of the project is entering the equipment installation stage, and the stage is expected to be completed during March, after which the prelaunch will begin.

Xinyangfeng expects to outperform competitors through superior quality

During the first phase of its iron phosphate project, Xinyangfeng has constantly cooperated with Longpan Technology since the early stages of construction. The performance requirements of Longpan Technology for iron phosphate are very clear. Moreover, Longpan Technology has participated in the equipment procurement and process optimization of the project. Therefore, Xinyangfeng will have a quality advantage compared to other companies in the iron phosphate industry.

As Xinyangfeng's iron phosphate project has not been put into production yet, its gross profit rate cannot be calculated exactly. However, according to a project planning feasibility study conducted by Xinyangfeng during August, 2021, the production cost per ton of iron phosphate was about RMB 9,000. If the technical-grade ammonium phosphate needed for production can be self-supplied, then the gross profit of 3 tons of iron phosphate will reach RMB 1,020.

For more information on China’s fertilizer market, please check our Phosphorus Industry China Monthly Report.

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