Local Chinese news media reported on March 26 that Pingxiang CPS held a ceremony to inaugurate its battery material project in the Pingxiang Economic Development Zone. The production capacity of the phase 1 of the project is set at 60,000 tons per year for LFP cathode materials. The development zone is within China’s Jiangxi Province.
Shenzhen CPS (CPS New Energy Technlogy), which is the parent company of Pingxiang CPS, signed a deal in April 2022 to build a base in the Pingxiang Economic Development Zone for manufacturing cathode and anode materials used in Li-ion batteries. The total investment in the project is estimated to have reached RMB 7.5 billion. The phase 1 of the project comprises 60,000 tons per year for LFP cathode materials. With the inauguration ceremony, the phase 1 is formally in operation.
Established in May 2022 and registered in Pingxiang, Pingxiang CPS is a wholly-owned subsidiary of Shenzhen CPS. Its businesses include special materials for electronics, technical support services, and import and export of technology goods and services.
Besides Pingxiang CPS, Shenzhen CPS has two other wholly-owned subsidiaries respectively located in China’s Shaanxi Province and Shandong Province. Headquartered in Bao’an District of Shenzhen, Shenzhen CPS as a hi-tech enterprise develops, manufactures, and sell advanced materials deployed in new energy applications.
Shenzhen CPS began working on cathode and anode materials for Li-ion batteries in 2016. Regarding cathode materials, the company focuses on LFP cathode materials that tolerate extremely low temperatures and have a high C-rate and energy density. As for anode materials, the company works on silicon-carbon anode materials that offer a longer operating life.
Moreover, Shenzhen CPS possesses intellectual properties related to Li-ion batteries that have a higher C-rate and can operate at extremely low temperatures. These intellectual properties provide the company with in-house capabilities for R&D and manufacturing.
Regarding capacity expansion activities, Shenzhen CPS broke ground on another base in Shandong on August 21, 2022. Located in Tai’erzhuang District of the prefecture-level city Zaozhuang, the base is set to have 180,000 tons per year for LFP cathode materials and 120,000 tons per year for silicon-carbon anode materials. The project will be built in two phases. Its site is set to span an area of 225,000 square meters. The total investment in the project is estimated to have reached RMB 10.5 billion.
The phase 1 of the Zaozhuang project spans an area of 145,000 square meters and comprise 180,000 tons per year for LFP cathode materials, whereas the phase 2 spans an area of 80,000 square meters and comprise 120,000 tons per year for silicon-carbon anode materials. Once the project is completed and reaches full production, it is expected to generate an annual output value of around RMB 45 billion and an annual tax revenue of around RMB 1.6-1.9 billion.
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.