CNNC TD(SZ:002145) 起点锂电·2025-09-05 10:30Core Viewpoint - The article discusses the recent developments in lithium iron phosphate (LFP) projects in Guizhou, particularly the announcement of a new 300,000-ton LFP project by Guizhou Phosphate Zhonghe Materials Co., Ltd. This project indicates a renewed commitment from leading companies like Zhonghe Titanium White to the lithium battery materials market despite previous project terminations due to structural overcapacity in LFP production [2][3][7]. Summary by Sections Project Announcement - Guizhou Province has announced a new LFP project with an annual production capacity of 300,000 tons, with the first phase targeting 150,000 tons. The project will occupy 129,600 square meters and includes production facilities and warehouses [2]. Company Background - Guizhou Phosphate Zhonghe Materials Co., Ltd. was established in April 2025 with a registered capital of 100 million yuan. It is a joint venture between Guizhou Phosphate Group (65% ownership) and Zhonghe Titanium White (35% ownership). The company focuses on manufacturing and researching electronic materials and new materials technology [2]. Market Context - The lithium battery industry is experiencing extended capacity expansion cycles, resource cost reductions, and limited demand growth. This has led to structural overcapacity in LFP production, causing challenges for companies like Zhonghe Titanium White [3]. Financial Performance - In the first half of 2025, Zhonghe Titanium White reported revenues of 3.77 billion yuan, a year-on-year increase of 19.66%. However, net profit decreased by 14.83%, with a gross margin of 13.21%, down 5.3 percentage points from the previous year. The revenue from titanium dioxide sales accounted for 80.17% of total sales, while new energy materials contributed only 3.40% [4][6]. Production Capacity - As of now, Zhonghe Titanium White has a production capacity of nearly 550,000 tons per year for titanium dioxide, 500,000 tons for phosphate rock, 120,000 tons for yellow phosphorus, and 100,000 tons for LFP [5]. Future Outlook - Despite the low revenue contribution from new energy materials, there was a significant year-on-year growth of 3029.26%, indicating that LFP products have started generating revenue. The successful advancement of the new project in Kaiyang, along with technological iterations, could further open up the market and help achieve transformation goals for Zhonghe Titanium White [7].