Mei Ri Jing Ji Xin Wen·2025-07-02 13:48Core Viewpoint - Fulin Precision (300432.SZ) has signed an agreement with Sichuan Development Longmang (002312.SZ) to establish a joint venture for the development of high-pressure dense lithium iron phosphate cathode materials and precursor projects, indicating a strategic move to enhance their supply chain and production capabilities in the lithium battery materials sector [1][2][3]. Group 1: Joint Venture and Project Details - The joint venture will focus on a new high-pressure dense lithium iron phosphate project with an annual capacity of 100,000 tons, located in the Mianzhu City ecological economic industrial park [2][3]. - Fulin Precision will hold a 51% stake in the joint venture, while Sichuan Development Longmang will also establish a precursor project with the same capacity, using lithium concentrate or lithium sulfate as raw materials [2][3]. - The collaboration aims to optimize both companies' production capacity in the lithium battery materials industry and enhance their resource advantages [2][3]. Group 2: Market Context and Demand - The demand for high-pressure dense lithium iron phosphate is increasing, particularly for fast-charging batteries used by companies like CATL [4][5]. - In 2024, Fulin Precision's revenue from lithium battery cathode materials is projected to reach 4.829 billion yuan, a year-on-year increase of 71.99%, with high-pressure dense lithium iron phosphate accounting for 100% of this revenue [3][4]. - The production capacity for high-pressure dense lithium iron phosphate is expected to be 144,200 tons in 2024, with an output of 128,200 tons and a capacity utilization rate of 88.95% [3]. Group 3: Technological and Competitive Advantages - High-pressure dense lithium iron phosphate is recognized as a fourth-generation lithium iron phosphate with superior performance and higher premium capabilities [5][6]. - The production process requires advanced techniques, including secondary sintering, which raises the technical barriers for production [5][6]. - The collaboration emphasizes the integration of upstream supply chains, particularly focusing on the production of ferrous oxalate, which is crucial for enhancing the performance of lithium iron phosphate [6].