Jiangxi Shenghua and CATL expand LFP supply agreement
2025-06-06 16:58:13 [Print]
Jiangxi Shenghua New Materials Co., Ltd., a subsidiary of Fulin Precision, has signed a supplemental agreement with Contemporary Amperex Technology Co., Ltd. (CATL) to deepen their cooperation on lithium iron phosphate (LFP) cathode materials, adjusting plans for production line construction and supply volumes.
Under the new terms, CATL will make a one-time prepayment of RMB500 million (USD69.61 million) by May 31, 2025, to support Jiangxi Shenghua's LFP projects, including a 160,000-tonne-per-annum (tpa) production base in Jiangxi and the 200,000tpa Phase III project in Sichuan. Jiangxi Shenghua has committed to completing Jiangxi Plant B by the end of April 2025, with full production capacity of 80,000tpa to be reached by the end of June. The company's Sichuan Phase III project will also be fast-tracked to deliver its planned capacity of 200,000tpa.
From 2025 to 2029, Jiangxi Shenghua will prioritize 100% of its LFP production capacity for CATL. In return, CATL will purchase at least 80% of the agreed annual output and may request early capacity expansion.
The agreement strengthens the long-term strategic partnership between the two companies and reinforces Jiangxi Shenghua's position in the LFP cathode material market.
Under the new terms, CATL will make a one-time prepayment of RMB500 million (USD69.61 million) by May 31, 2025, to support Jiangxi Shenghua's LFP projects, including a 160,000-tonne-per-annum (tpa) production base in Jiangxi and the 200,000tpa Phase III project in Sichuan. Jiangxi Shenghua has committed to completing Jiangxi Plant B by the end of April 2025, with full production capacity of 80,000tpa to be reached by the end of June. The company's Sichuan Phase III project will also be fast-tracked to deliver its planned capacity of 200,000tpa.
From 2025 to 2029, Jiangxi Shenghua will prioritize 100% of its LFP production capacity for CATL. In return, CATL will purchase at least 80% of the agreed annual output and may request early capacity expansion.
The agreement strengthens the long-term strategic partnership between the two companies and reinforces Jiangxi Shenghua's position in the LFP cathode material market.
Lithium Iron Phosphate Li 3.9%min Delivered China
Unit:RMB/mt
China's ithium iron phosphate producers' sales volume statistics by province by month
Unit: mt
