Core Viewpoint - Sichuan Development Longmang Co., Ltd. announced the establishment of a joint venture with Jiangxi Shenghua New Materials Co., Ltd. to invest in a 175,000 tons/year high-pressure dense lithium iron phosphate project, with a total investment of 1.961 billion yuan [1][2] Group 1: Joint Venture and Project Details - The joint venture, named Fulian Longmang New Materials Co., Ltd., will be established with a registered capital of 660 million yuan, where Jiangxi Shenghua holds a 51% stake and Deyang Chuanfa Longmang holds 49% [1] - The project will be located in the Deyang-Abazhou Ecological Economic Industrial Park in Mianzhu, Sichuan, and will utilize the oxalic acid ferrous process for production [1][3] Group 2: Strategic Importance and Market Context - This collaboration is seen as a key move in the circular economy strategy of Sichuan Development Longmang, leveraging by-products from its phosphate chemical operations to reduce raw material costs and achieve a closed-loop industry chain [2][3] - The demand for lithium iron phosphate batteries is increasing due to the rapid growth of the new energy vehicle and energy storage markets, positioning the project favorably within a strong supply-demand landscape [3] Group 3: Future Outlook and Industry Trends - The partnership is expected to enhance the company's competitive edge and market influence in the new energy sector, optimizing product structure and expanding production capacity [3] - The industry is entering a phase where cost advantages will be crucial, with companies possessing resource advantages likely to outperform those without [4]