Shenghua Ramps Up Lithium-Iron-Phosphate Production at New Yichun Facility

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Jiangxi Shenghua New Material has officially begun trial production at its latest lithium-iron-phosphate (LFP) plant in Yichun, a city in southeastern China’s Jiangxi province. The facility, built in two stages, will eventually produce up to 150,000 tonnes of LFP annually. The first phase, funded with an investment of 1.5 billion yuan (approximately $214 million), features six production lines, with full-scale operations set to commence by mid-October. By the end of 2024, the entire plant is expected to be fully operational.

Strengthened Output Through CATL Partnership

Jiangxi Shenghua has also deepened its collaboration with CATL, China’s largest power battery producer, which has provided upfront financing to aid the plant’s development. In return, Shenghua has agreed to supply at least 140,000 tonnes of LFP annually to CATL from 2025 through 2027, marking a significant commitment to expanding their production capacity.

Shenghua’s output has seen a substantial increase in 2024, with the company producing 47,000 tonnes of LFP in the first half of the year, more than tripling its production compared to the same period in 2023. By comparison, the company produced 42,159 tonnes of LFP for the entirety of 2023, and its current production capacity now stands at 140,000 tonnes annually.

LFP batteries continue to lead China’s energy storage market, with 75% of the market’s production and 74% of installed battery volumes in August being LFP-based, according to the China Automotive Battery Innovation Alliance.

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