Our reporter Li Zhe reports from Beijing

Recently, phosphorus chemical enterprises have successively handed over “transcripts” in 2021. Among them, the net profit of Yuntianhua (600096. SH) increased by 1238.77% year-on-year, and the net profit of Hubei Yihua (000422. SZ) and Xingfa group (600141. SH) also increased by 1255.01% and 583.58% year-on-year respectively.

While the performance is generally good, many listed phosphorus chemical companies have laid out the lithium battery market, and the important direction is lithium iron phosphate.

In this regard, Moke, the founder and chief analyst of truth Research Institute, told the reporter of China Business Daily that phosphorus chemical enterprises have the advantages of raw materials. In addition, the lithium battery market has developed very rapidly. In particular, the installed capacity of lithium iron phosphate has continued to grow in recent years, which has a great attraction to phosphorus chemical enterprises, which is likely to become a new growth point of phosphorus chemical enterprises in the future. On the other hand, more competitors in the lithium battery field will make the industry more dynamic and beneficial to the development of the industry.

The trend of lithium battery extends upward

On April 11, China Automobile Industry Association (hereinafter referred to as “China Automobile Association”) released the national automobile sales volume in March. Data show that in March, the national sales volume of new energy vehicles was 484000, a year-on-year increase of 114.1%. In the first quarter of this year, the sales volume of new energy vehicles reached 1257000, a year-on-year increase of 138.6%. Correspondingly, the sales volume of China in 2019 was 1206000.

Driven by new energy vehicles, the power battery industry has also ushered in a period of development opportunities. According to the research data of China automotive power battery industry innovation alliance, China’s power battery output in 2021 was 219.7gwh, a year-on-year increase of 163.4%, of which the output of lithium iron phosphate battery was 125.4gwh, accounting for 57.1% of the total output, a year-on-year increase of 262.9%.

On March 22, Xingfa group issued an announcement on raising funds by publicly issuing convertible corporate bonds. The announcement shows that Xingfa group plans to publicly issue convertible corporate bonds, and the total amount of funds raised is expected to be no more than 2.8 billion yuan. The funds will be used for the new 200000 t / a iron phosphate and supporting 100000 t / a wet process phosphoric acid refining technology transformation project, the new 80000 t / a functional silicone rubber project, and the repayment of bank loans. Among them, the iron phosphate project plans to use 831 million yuan of raised funds. The 100000 t / a wet process phosphoric acid refining technology transformation project will be used as a supporting facility for iron phosphate, and it is planned to raise 439 million yuan.

Xingfa group is mainly engaged in phosphorus ore mining and sales, and the production and sales of chemical products such as fine phosphate, phosphate fertilizer, organophosphorus pesticides, silicone and electronic chemicals.

Referring to the investment of Xingfa group in the field of new energy, especially lithium batteries, the company said that this is due to the favorable national policies on new energy. In addition, the company has also made corresponding breakthroughs in relevant technologies. “At present, many domestic enterprises, especially those involved in manufacturing, are transforming to new energy, which has good prospects in terms of demand and market space. Local governments are also promoting the development of relevant industries.”

In fact, the centralized layout of lithium battery industry by phosphorus chemical enterprises is becoming a new development direction. In this regard, a person from the phosphorus chemical industry said that now the whole phosphorus chemical industry is undergoing transformation, including Hubei Yihua, Yuntianhua and other phosphorus chemical listed companies are moving closer to the direction of new energy.

In October 2021, Hubei Yihua announced that it and Ningbo Bangpu Times New Energy Co., Ltd. (hereinafter referred to as “Bangpu times”) signed the agreement on cooperation intention of integrated battery material supporting chemical raw materials project in Wuhan, Hubei Province, reached a cooperation intention agreement on the construction of integrated battery material supporting chemical raw materials project, and planned to cooperate with Bangpu times in the field of new energy battery material supporting chemical raw materials.

It is reported that Bangpu times is a holding subsidiary of Ningde times. The cooperation between the former and Hubei Yihua will focus on the construction and operation of iron phosphate, nickel sulfate and its front-end phosphate rock, phosphoric acid, sulfuric acid and other chemical raw materials; The construction and operation of supporting phosphogypsum weekly transfer, phosphogypsum comprehensive utilization project, etc.

In addition, at the end of December 2021, the Ningde times Guizhou new energy power and energy storage battery production and manufacturing base project held a centralized commencement ceremony in the main venue of Gui’an new area, and the Guizhou phosphating group and Ningde times battery industry cooperation project started simultaneously in Kaiyang, Xifeng and Fuquan bases.

Yuntianhua mentioned in its 2021 financial report that it focuses on resources and industrial advantages, promotes the vertical extension of the industry, promotes the transformation of industrial structure, the development of non fertilizer business is beginning to take shape, and is accelerating the construction of 500000 tons of iron phosphate and its supporting devices.

Technological capital has become an important driver

In terms of resource distribution, phosphorus resources in China are mainly distributed in Guizhou, Sichuan, Hubei and other regions. Driven by the new energy industry, the lithium battery market continues to be hot. Phosphorus chemical enterprises choose to enter this field, which has something to do with the technical breakthrough and market space behind it.

Moke, the founder and chief analyst of truth Research Institute, told reporters that phosphorus chemical enterprises have the advantages of raw materials. In addition, the lithium battery market has developed very rapidly. In particular, the installed capacity of lithium iron phosphate has continued to grow in recent years, which is very attractive to phosphorus chemical enterprises, which is likely to become a new growth point of phosphorus chemical enterprises in the future. The technical threshold of lithium iron phosphate materials has also been continuously reduced in recent years. From the perspective of talents and technology, there are corresponding technical reserves, and the market is full of opportunities. Under the superposition of multiple factors, there is the current situation.

Moco’s view has also been recognized by people in the phosphating industry. “From a technical point of view, it is not a breakthrough in the last year or two. Previously, a domestic enterprise mastered the relevant production technology, and then gradually spread to other companies. Then it gradually spread among phosphorus chemical enterprises.” The above phosphorus chemical industry said.

The first choice for phosphorus chemical enterprises to enter the field of lithium battery is the track of iron phosphate. “The first is to start with iron phosphate, which is the main raw material of the precursor in the lithium battery industry, and then gradually expand to the field of lithium iron phosphate cathode materials.” Said Mercer.

Xingfa group also said that from the perspective of industrial supporting, it already has relevant supporting industries for the production of iron phosphate, in addition to the need for iron resources

Our reporter Li Zhe reports from Beijing

Recently, phosphorus chemical enterprises have successively handed over “transcripts” in 2021. Among them, the net profit of Yuntianhua (600096. SH) increased by 1238.77% year-on-year, and the net profit of Hubei Yihua (000422. SZ) and Xingfa group (600141. SH) also increased by 1255.01% and 583.58% year-on-year respectively.

While the performance is generally good, many listed phosphorus chemical companies have laid out the lithium battery market, and the important direction is lithium iron phosphate.

In this regard, Moke, the founder and chief analyst of truth Research Institute, told the reporter of China Business Daily that phosphorus chemical enterprises have the advantages of raw materials. In addition, the lithium battery market has developed very rapidly. In particular, the installed capacity of lithium iron phosphate has continued to grow in recent years, which has a great attraction to phosphorus chemical enterprises, which is likely to become a new growth point of phosphorus chemical enterprises in the future. On the other hand, more competitors in the lithium battery field will make the industry more dynamic and beneficial to the development of the industry.

The trend of lithium battery extends upward

On April 11, China Automobile Industry Association (hereinafter referred to as “China Automobile Association”) released the national automobile sales volume in March. Data show that in March, the national sales volume of new energy vehicles was 484000, a year-on-year increase of 114.1%. In the first quarter of this year, the sales volume of new energy vehicles reached 1257000, a year-on-year increase of 138.6%. Correspondingly, the sales volume of China in 2019 was 1206000.

Driven by new energy vehicles, the power battery industry has also ushered in a period of development opportunities. According to the research data of China automotive power battery industry innovation alliance, China’s power battery output in 2021 was 219.7gwh, a year-on-year increase of 163.4%, of which the output of lithium iron phosphate battery was 125.4gwh, accounting for 57.1% of the total output, a year-on-year increase of 262.9%.

On March 22, Xingfa group issued an announcement on raising funds by publicly issuing convertible corporate bonds. The announcement shows that Xingfa group plans to publicly issue convertible corporate bonds, and the total amount of funds raised is expected to be no more than 2.8 billion yuan. The funds will be used for the new 200000 t / a iron phosphate and supporting 100000 t / a wet process phosphoric acid refining technology transformation project, the new 80000 t / a functional silicone rubber project, and the repayment of bank loans. Among them, the iron phosphate project plans to use 831 million yuan of raised funds. The 100000 t / a wet process phosphoric acid refining technology transformation project will be used as a supporting facility for iron phosphate, and it is planned to raise 439 million yuan.

Xingfa group is mainly engaged in phosphorus ore mining and sales, and the production and sales of chemical products such as fine phosphate, phosphate fertilizer, organophosphorus pesticides, silicone and electronic chemicals.

Referring to the investment of Xingfa group in the field of new energy, especially lithium batteries, the company said that this is due to the favorable national policies on new energy. In addition, the company has also made corresponding breakthroughs in relevant technologies. “At present, many domestic enterprises, especially those involved in manufacturing, are transforming to new energy, which has good prospects in terms of demand and market space. Local governments are also promoting the development of relevant industries.”

In fact, the centralized layout of lithium battery industry by phosphorus chemical enterprises is becoming a new development direction. In this regard, a person from the phosphorus chemical industry said that now the whole phosphorus chemical industry is undergoing transformation, including Hubei Yihua, Yuntianhua and other phosphorus chemical listed companies are moving closer to the direction of new energy.

In October 2021, Hubei Yihua announced that it and Ningbo Bangpu Times New Energy Co., Ltd. (hereinafter referred to as “Bangpu times”) signed the agreement on cooperation intention of integrated battery material supporting chemical raw materials project in Wuhan, Hubei Province, reached a cooperation intention agreement on the construction of integrated battery material supporting chemical raw materials project, and planned to cooperate with Bangpu times in the field of new energy battery material supporting chemical raw materials.

It is reported that Bangpu times is a holding subsidiary of Ningde times. The cooperation between the former and Hubei Yihua will focus on the construction and operation of iron phosphate, nickel sulfate and its front-end phosphate rock, phosphoric acid, sulfuric acid and other chemical raw materials; The construction and operation of supporting phosphogypsum weekly transfer, phosphogypsum comprehensive utilization project, etc.

In addition, at the end of December 2021, the Ningde times Guizhou new energy power and energy storage battery production and manufacturing base project held a centralized commencement ceremony in the main venue of Gui’an new area, and the Guizhou phosphating group and Ningde times battery industry cooperation project started simultaneously in Kaiyang, Xifeng and Fuquan bases.

Yuntianhua mentioned in its 2021 financial report that it focuses on resources and industrial advantages, promotes the vertical extension of the industry, promotes the transformation of industrial structure, the development of non fertilizer business is beginning to take shape, and is accelerating the construction of 500000 tons of iron phosphate and its supporting devices.

Technological capital has become an important driver

In terms of resource distribution, phosphorus resources in China are mainly distributed in Guizhou, Sichuan, Hubei and other regions. Driven by the new energy industry, the lithium battery market continues to be hot. Phosphorus chemical enterprises choose to enter this field, which has something to do with the technical breakthrough and market space behind it.

Moke, the founder and chief analyst of truth Research Institute, told reporters that phosphorus chemical enterprises have the advantages of raw materials. In addition, the lithium battery market has developed very rapidly. In particular, the installed capacity of lithium iron phosphate has continued to grow in recent years, which is very attractive to phosphorus chemical enterprises, which is likely to become a new growth point of phosphorus chemical enterprises in the future. The technical threshold of lithium iron phosphate materials has also been continuously reduced in recent years. From the perspective of talents and technology, there are corresponding technical reserves, and the market is full of opportunities. Under the superposition of multiple factors, there is the current situation.

Moco’s view has also been recognized by people in the phosphating industry. “From a technical point of view, it is not a breakthrough in the last year or two. Previously, a domestic enterprise mastered the relevant production technology, and then gradually spread to other companies. Then it gradually spread among phosphorus chemical enterprises.” The above phosphorus chemical industry said.

The first choice for phosphorus chemical enterprises to enter the field of lithium battery is the track of iron phosphate. “The first is to start with iron phosphate, which is the main raw material of the precursor in the lithium battery industry, and then gradually expand to the field of lithium iron phosphate cathode materials.” Said Mercer.

Xingfa group also said that from the perspective of industrial supporting, it already has relevant supporting industries for the production of iron phosphate, in addition to the need for iron resources