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MALION Will Acquire Huihong Pigment so as to Hasten Its Expansion into Field of Na-Ion Batteries

published: 2023-04-05 9:30

Among the major types of cathode materials used in Na-ion batteries, Prussian blue (white) compounds have the advantages of high capacity, high C-rate, and low cost. Hence, suppliers for Na-ion batteries have been actively developing their capabilities to manufacture or obtain Prussian blue (white) compounds.

MALION announced on March 13 that it subsidiary MALION New Materials will acquire Huihong Pigment in its entirety. The deal is estimated to worth around RMB 126 million. Following the acquisition, Huihong will operate as a wholly-owned subsidiary of MALION New Materials.

According to publicly available information, Huihong was established in November 2023 as a holding subsidiary of HIFICHEM. Huihong specializes in high-performance organic dyes, color pigments, and related additives. With regard to Prussian blue, Huihong possesses a production line and a team that develops related products. Huihong’s production can be modified to enable the mass production of cathode materials for Na-ion batteries.

Established in June 2006, HIFICHEM is also mainly involved in dyes, solvents, and related intermediates. The company is one of the major suppliers for organic dyes in China.

MALION New Materials, too, supplies organic dyes and polymer composite coloring materials. Additionally, it provides services related to coloring technologies and has developed integrated solutions for the coloring of plastic products. In China’s industry for color masterbatches, MALION has been a leader. It is one of few Chinese color pigment suppliers that can simultaneously mass produce white masterbatch, black masterbatch, and masterbaches of different colors.

MALION New Materials was just formed in January 2023 as a joint venture of MALION and HIFICHEM. This new entity focuses on cathode materials for Na-ion batteries. In terms of shareholding structure, MALION has a 51% stake, whereas HIFICHEM has a 49% stake. MALION New Materials plans to build a project for manufacturing battery-grade Prussian blue (white) compounds. The project is set to have a production capacity of 180,000 tons per year and entails an estimated investment of RBM 2.5 billion.

MALION New Materials said the acquisition of Huihong is conducive to hastening the development of the industrial production process for battery-grade Prussian blue (white) compounds. The deal also aligns with the overall growth strategy of MALION New Materials as it further improves its competitiveness in the market for cathode materials used in Na-ion batteries.

MALION New Materials and HIFICHEM Have Made Many Joint Investments Pertaining to Na-Ion Batteries

On January 6, 2023, MALION announced that MALION New Materials, LI-FUN Technology, HIFICHEM had entered into a strategic cooperation agreement to jointly promote the development of the industrial production of Na-ion batteries. The first phase of this joint campaign is set to last 10 years.

Specifically, the respective technology research teams of the three companies will conducting joint research on the performance, specification, and manufacturing process of Prussian blue (white) compounds. They will establish a communication and feedback mechanism so they can share their expertise and experience. This way, they will be able to improve their respective technological solutions for cathodes and manufacturing process.

Later, on March 4, HIFICHEM disclosed that it will make capital injections on MALION New Materials and Xingkong Sodium Battery. The total capital increase is estimated to reach RMB 125 million. Once this transaction is completed. Xingkong will become a holding company of HIFICHEM and MALION New Materials that will each control a 7.5% stake.

Xingkong specializes in the development and manufacturing of the cathodes and anodes used Na-ion batteries. The company also has the capability to produce Na-ion battery products at a significant scale and develop Na-ion battery products for commercial applications. It core offerings are based on cathodes that incorporate Prussian blue.

Regarding the capital injections, HIFICHEM stated that this kind of deal will accelerate the development of the industrial production of battery-grade Prussian blue compounds. The company will also benefit with respect to resource consolidation and downward vertical integration. Working with its partners, HIFICHEM will work towards the gradual formation of a complete industry chain for Na-ion batteries.

This article is a translation of a Chinese article posted by Wendy at 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.

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