Project Overview
On August 3, Shida Shenghua disclosed three investment announcements from wholly-owned subsidiaries, planning to build a 230,000 t/y liquid lithium salt project, a 200,000 t/y electrolyte project, and a 12,000 t/y additive (lithium fluoride) project in the same plant area in Kenli District, Dongying, Shandong, with total investment of approximately 2.805 billion yuan. After all three projects reach full production, they are expected to add about 13.491 billion yuan in annual revenue and about 1.706 billion yuan in net profit. The projects are still subject to approval by the company's shareholders' meeting. Specifically, the 230,000 t/y liquid lithium salt project has a proposed investment of 1.797 billion yuan, a construction period of 24 months, planned capacity of 150,000 t/y DMC liquid lithium salt and 80,000 t/y EMC liquid lithium salt, with co-production of about 270,000 tonnes of 31% hydrochloric acid; after reaching full production, annual revenue is forecast at 6.086 billion yuan and net profit at 1.523 billion yuan.
Capacity Planning
The 200,000 t/y electrolyte project has a total investment of 722 million yuan and a 12-month construction period, and is forecast to generate annual revenue of 5.441 billion yuan and net profit of 99.22 million yuan after full production. The 12,000 t/y additive (lithium fluoride) project has a total investment of 286 million yuan and a 12-month construction period, and is forecast to generate annual revenue of 1.964 billion yuan and net profit of 83.91 million yuan after full production. A company representative said the expansion is based on continued optimism about future lithium battery market demand, and the company hopes to leverage its technical advantages in lithium hexafluorophosphate to enhance the competitiveness of its electrolyte products.