Collaborative Development in Guizhou
China’s largest stainless steel producer, Tsingshan, has partnered with battery materials producer Huayou Cobalt and adipic acid manufacturer Huafon to undertake a large-scale phosphate-coal-chemical integration project in Zhijin county, Guizhou province. The project, with an estimated value of 73 billion yuan ($10.3 billion), aims to create a comprehensive production complex.
The new facility will include several production lines, such as 1.5 million tons per year of iron phosphate, 800,000 tons per year of lithium iron phosphate (LFP), and 1 million tons per year of dimethyl carbonate. It will also produce 800,000 tons of synthetic ammonia, 500,000 tons of methanol derived from coke oven gas, and 5 million tons of coking annually. Zhijin county, known for its abundant mineral resources, is an ideal location for this project, boasting coal reserves exceeding 15 billion tons and nearly 3.5 billion tons of phosphate rock reserves.
Industry Trends and Regulatory Landscape
The rising demand for LFP materials, fueled by the electric vehicle sector, has prompted many Chinese companies to expand their production capacities. In August, for example, CATL, China’s largest battery manufacturer, announced a partnership with Jiangxi Shenghua New Material to establish a new plant. However, concerns over potential oversupply have led the Chinese government to introduce measures to prevent overcapacity and encourage technological innovation. This regulatory pressure was evident in Xinjiang International Industry’s decision to cancel its LFP energy storage battery project in June.
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