Jiangxi Shenghua and CATL ink LFP cooperation agreement
2024-08-13 14:29:07 [Print]
Jiangxi Shenghua New Material Co., Ltd., a holding subsidiary of Fulin Precision, has reached an agreement with CATL to establish a long-term cooperative partnership for the verification, production and supply of lithium iron phosphate (LFP), a cathode material for lithium battery.
Under the agreement, CATL agrees to give Jiangxi Shenghua some advance payments to finance the construction of a 75,000tpa LFP production base in Jiangxi, while Jiangxi Shenghua promises that it will finish construction of the production base as scheduled and meet the 75,000tpa capacity target as requested by CATL.
Jiangxi Shenghua also makes a commitment to reserve capacity for CATL between 2025 and 2027, and CATL promises to purchase at least 140,000tpa of LFP from Jiangxi Shenghua during the three-year period, providing that Jiangxi Shenghua's product has comprehensive advantage.
Fulin Precision also announced that it plans to acquire 40% stake in Jiangxi Shenghua held by minority shareholders CATL and Yangtze Chendao for a total consideration of around RMB389 million (USD54.22 million). Upon completion, Fulin Precision will increase its shareholding in Jiangxi Shenghua from 56.27% to 96.27%.
Under the agreement, CATL agrees to give Jiangxi Shenghua some advance payments to finance the construction of a 75,000tpa LFP production base in Jiangxi, while Jiangxi Shenghua promises that it will finish construction of the production base as scheduled and meet the 75,000tpa capacity target as requested by CATL.
Jiangxi Shenghua also makes a commitment to reserve capacity for CATL between 2025 and 2027, and CATL promises to purchase at least 140,000tpa of LFP from Jiangxi Shenghua during the three-year period, providing that Jiangxi Shenghua's product has comprehensive advantage.
Fulin Precision also announced that it plans to acquire 40% stake in Jiangxi Shenghua held by minority shareholders CATL and Yangtze Chendao for a total consideration of around RMB389 million (USD54.22 million). Upon completion, Fulin Precision will increase its shareholding in Jiangxi Shenghua from 56.27% to 96.27%.
Lithium Iron Phosphate Li 3.9%min Delivered China
Unit:RMB/mt
China's ithium iron phosphate producers' inventory to production ratio statistics by province by month
Unit: %
