In May, an event was held to the market initiation and completion of several industrial manufacturing projects located in the National Nangchang Xiaolan Economic and Technological Development Zone. Among these projects are an LFP cathode project that is being developed by KingLi Techology (KTC), a holding subsidiary of Changyuan Technology Group (CYG). Nanchang is the capital of China’s Jiangxi Province.
According to the reporting by local news media, the phase 1 of the LFP cathode project is set to have a production capacity of 15,000 tons per year. According to the project development schedule, the phase will be completed and enter operation in 2024. The aims of the project are to first bridge the company’s production capacity gap and then rapidly generate output value for the local economy.
On February 17 of this year, CYG announced that KTC, in which it has a 51% stake, would establish a wholly-owned subsidiary in Nanchang. Through the subsidiary, KTC would set up the aforementioned project.
At the event, Wu Qiquan, Chairman and CEO of CYG, stated that the global market for batteries purposed for new energy solutions has been growing rapidly. Likewise, demand has been quite strong for LFP, which serves as one of the mainstream cathode materials for Li-ion batteries. KTC has been working in the market segment for LFP cathodes for many years, so it has built a huge client base. Wu also said that CYG chose Nanchang for the new LFP cathode project because the city has advantages in terms of geography, logistics, basic infrastructure, business environment, and governmental services.
Established in 1986, CYG is a conglomerate whose core businesses encompass digital solutions for smart industrial electrical power systems, manufacturing services, etc. In recent years, CYG expanded into the field of materials used in Li-ion batteries. It crossed over by first making KTC a holding subsidiary through share subscription.
KTC was a pioneer in the development of LFP cathodes and is currently involved in the manufacturing and sales of related products. The company’s offerings have been qualified by 40 battery manufacturers. Its major customers in the downstream of the industry chain include Ganfeng LiEnergy, Shuangdeng Front, Great Power, and Phylion.
KTC currently has four main product models for LFP cathodes: (1) K24 that is general-purpose and can be adopted for light electric vehicles and energy storage equipment; (2) K24-E/F that has a high energy density and is designed for electric vehicles; (3) K27 that has an excellent cost-to-performance ratio and is suitable for energy storage applications; and (4) K24-H that is a water-based cathode slurry.
CYG in its annual report for 2022 said that it has been increasing its stake in KTC. Currently, CYG has a 51% stake in KTC, and the subsidiary was formally included into its financial reporting in March 2022. KTC’s realized revenue for the reporting period came to RMB 422 million.