The cathode producer Shenghua, a subsidiary of Fulin Precision Industry, plans to build a 200,000-ton high pressure lithium iron phosphate project in Yichun in the Jiangxi province, the company said in a statement. According to the agreement, Jiangxi Shenghua will invest in the Yichun Economic and Technological Development Zone which in return will guarantee supply of lithium resources. Whether it's not clear if the actual investment will be used for anything other than the actual precursor and cathode production the agreement involves setting up lithium chemical conversion, recycling and reuse operations.
The project will be built in two phases, both with a capacity of 100,000 tonnes of cathode material and an investment of 2.5Bn RMB (395MUSD), taking the total investment to 5Bn RMB.
Shenghua's largest customer is CATL which also has co-invested in the cathode producer's 50,000 tonnes LFP cathode plant in Sichuan, which was commissioned in July 2021.