On November 9, Chinese chemical supplier Yuntianhua reported its financial results for the third quarter. During the event, the company provided its investors with the latest information about its capacity expansion activities. Among its new manufacturing projects, one with 100,000 tons per year of production capacity for ferric phosphate finished construction in September and is currently in the pilot production phase. Yuntianhua said it is working hard to get the plant operate at full capacity. Furthermore, another project that will add 2.2 million tons of production capacity for ferric phosphate is underway and scheduled to enter operation by the end of 2023. Yuntianhua has also recently completed a project for the manufacturing of lithium hexfluorophosphate and hydrofluoric acid. This project is a joint venture with DFD and has entered the pilot production phase.
At its quarterly presentation, Yuntianhua said it is manufacturing secondary products from its existing processes for products based on fluorine and phosphorous. Currently, the company’s subsidiaries possess 10,000 tons per year of production capacity for magnesium fluorosilicate and 1,500 tons per year of production capacity for fluoro-nitrobenzene that can be purposed for pharmaceutical applications. At the same time, the company is setting 100,000 tons per year of production capacity for ammonium bifluoride.
Yuntianhua has established several subsidiaries and invested in other chemical suppliers. Among them, Yunnan Fluorine Phosphorus Electronic Technology has 5,000 tons per year of production capacity for lithium hexfluorophosphate, and Yunnan Wengfu Yuntianhua Fluorchem Technology has 30,000 tons per year of production capacity for anhydrous hydrogen fluoride. Another subsidiary has 35,000 tons per year of production capacity for aluminum fluoride.
Regarding the production capacity figures of its other chemical products, Yuntianhua currently possesses 2 million tons per year of production capacity for synthetic ammonia. The company has also set up 200,000 tons per year of processing capacity for purifying phosphoric acid via a wet process and is adding another 100,000 tons per year. Moreover, the company has been extracting fluorine from the fluorspars that exists in phosphate minerals. In doing so, it has been able to maintain a certain level of inventory for fluorine. Also, the company now has around 170,000 tons per year of production capacity for hexafluorosilicic acid as a secondary product.
According to Yuntianhua’s plan to expand into the market for new energy solutions, the company will be capitalizing on opportunities surrounding ferric phosphate and partnering with companies that have competitive advantages in the battery supply chain. Together, Yuntianhua and its allies will pool their resources, technologies, and capital so as to build an industry clusters for advanced materials used in Li-ion batteries.
On September 29 this year, Yuntianhua and Huayou Holding Group signed a letter of intent for cooperation in the production of ferric phosphate and lithium ferro-phosphate. Two parties will form a complete and competitive industry chain for these materials. Currently, both sides are formulating follow-up plans and seeking approvals from the relevant regulatory authorities.
Also, at the start of this year, Yuntianhua has signed investment agreement with SEMCORP, Huayou Holding Group, EVE, and the government of Yuxi. Yuntianhua, SEMCORP, Huayou, and EVE will form a joint venture with an initial registered capital of RMB 10 million. The new entity is currently being set up, and various departments under the government Yuxi are committing resources to support its development. Yuxi is a prefecture-level city in China’s Yunnan Province.
This article is a translation of a Chinese article posted by TrendForce. It contains information that is either sourced from other news outlets or accessible in the public domain. Some Chinese names are transcribed into English using Hanyu Pinyin.