Summary: Fengyuan Chemical planned to invest USD360.23 million (RMB2.50 billion) in building a FePO₄ project and an oxalic acid project.

On 17 March, 2023, Shandong Fengyuan Chemical Co., Ltd. (Fengyuan Chemical) announced that the company planned to sign the Investment Agreement with the People's Government of Huaning County, Yuxi City, Yunnan Province. The company intended to invest USD360.23 million (RMB2.50 billion) in constructing a 200,000 t/a ferric phosphate (FePO₄) integrated project and a 100,000 t/a oxalic acid and yellow phosphorus tail gas comprehensive utilisation project in Huaning Industrial Park. Details of these projects are shown as below:

• The 200,000 t/a FePO₄ and supporting facility project is divided into two phases. The first phase will build capacity of 100,000 t/a FePO₄ and the second phase will be constructed according to the progress of the first phase.
• The 100,000 t/a oxalic acid and yellow phosphorus tail gas comprehensive utilisation project is also divided into two phases. The first phase contains 50,000 t/a oxalic acid and the second phase will be built based on the progress of the first one.
• The investment of fixed assets of the first phase project is USD115.27 million (RMB800.00 million) and the investment for the second project is USD144.09 million (RMB1.00 billion). The total investment of the contract is planned to be completed within 42 months and the equipment commissioning and trial production will start within 120 days after the acceptance inspection of the workshops of each phase.

 

Fengyuan Chemical stated that FePO₄ is one of the key raw materials for its main product lithium ferrous phosphate (LiFePO₄) cathode material. The establishment of the above projects can reduce the negative impact of price fluctuation of raw materials, cut down production costs, improve overall performance of the company's products, expand upstream industrial chain, and improve industrial layout.

 

In addition, Fengyuan Chemical will enhance efforts to expand capacity in 2023. In terms of li-ion battery cathode materials, the production bases in Zaozhuang City, Shandong Province, Anqing City, Anhui Province, and Yuxi City, Yunnan Province have been constructed as schedule. The company is forecast to achieve capacity of 300,000 t/a LiFePO₄ and 15,000 t/a ternary materials by late 2023. Fengyuan Chemical has also promoted the li-ion battery cathode material supporting project steadily and the capacity of FePO₄ is anticipated to reach 100,000 t/a in 2023.