Development and Prospect of Lithium Battery Anode Material Industry

2021-05-19 07:40:36

China Nonferrous Metals Monthly 2021年12期

Anode materials are the carrier of Li-ion and electron during charging process of lithium battery.Playing the role of energy storage and release, anode materials are one of the key deciding materials for the performance of lithium battery capacity, cycle and rate(fast charge).

Lithium battery industry has become the hottest industry this year, leading to a surge in the price of various upstream raw materials,including lithium carbonate, lithium phosphate, Lithium Hexafluorophosphate and PVDF.In the meantime, stocks related to lithium battery in A share market soared.

Supply falls short of demand in anode materials.Sometimes there is even no supply at all to those who offer a high price.To be more specific, the shortage of anode graphitization supply is the leading cause for the tension of finished products.On one hand, the graphitization supply in main producing areas is severely strained due to factors such as “double control”,environmental protection, heating for winter and Olympic Winter Games.More than that,in the context of a big surge in lithium battery production and sales volume, the expansion of anode material graphitizing capacity being inferior to that of downstream lithium battery capacity is another very important reason.

In power battery, anode materials occupy 10%-15% of total cost.China, European countries, Japan and Korea have determined that they will energetically develop NEV,leading to a surge in sales in NEV since the second half of last year and a big increase in lithium battery sales.In the first half of 2021, cumulative production of our lithium batteries reached 110GWh, a YOY growth of 60%.In the second half, with the prosperity going on, it is estimated that total global lithium battery production will exceed 230GWh.The ring growth of anode material production in the first half of this year reached 143%.However, there was hardly any expansion in the capacity of supporting core material, anode graphitizing,i.e.there was only 50000 tons of graphitizing capacity put into effective operation in China in the first half of this year.It is believed that the tension is going to intensify during the second half of this year and is going to last until Q4 of 2022.The overall prospect is very satisfactory and technical routes are becoming the focus of the industry.

1.The Market Entered Fast Lane in 2016,presenting an overall annual growth of as high as 30%

Lithium battery anode market entered fast lane in 2016, presenting an annual growth of over 30%.The demand for anode materials globally in 2020 was 420000 tons, and actual purchasing volume was 480000 tons,basically in step with the supply volume of 540000 tons.Driven by the high growth expectations, there will be a growth of 30%in anode material in the coming 3-5 years.

China is the important anode material supplier to global leading battery manufacturers, and we will enjoy profit making opportunities brought by the surge in NEV-related market globally.In the first half of the year, the shipment of our anode material was 332000 tons, a YOY growth of 170%; it is estimated that the year-round sales will reach 738000 tons, with the growth rate of over 100%; the CAGR of anode material market will be over 35% during “the 14th Five Year”, and the market scale will reach 3468000 tons as of 2025.

2.Synthetic Graphite is the Mainstream Technical Route and Silicon Base in the Future Development Direction

Carbon base (graphite and synthetic graphite), silicon base, lithium titanate and transition metal nitride are four mainstream technical routes in anode materials.Among all, the shipment of synthetic graphite accounts for 80%.In 2020, the shipment of lithium battery anode materials of China was 347000 tons, including 271000 tons of synthetic graphite anode, 58000 tons of natural graphite anode and 10000 tons of silicon-based anode.

(1)Synthetic graphite is continuously gaining more market share and is getting dominant

1.Natural graphite

Natural graphite boasts advantages of low cost and specific capacity.But it also has disadvantages of easy expansion, too many surface defects and poor compatibility with electrolyte.Therefore, natural graphite is inferior to synthetic graphite in terms of cycle life, safety and fast charging performance.

Nevertheless, natural graphite still presents the annual growth of over 30%.With the improvement of technologies, natural graphite is likely to gain more market share relying on its cost advantage, while the growth rate is going be constrained due to resource bottleneck.

2.Synthetic graphite

With more balanced overall performance,synthetic graphite anode materials are more competitive in the market.Being easy to expand the capacity makes it adaptive to the development trend of NEV industry.Leading domestic power battery manufacturers are using synthetic graphite as anode materials and the market share is getting greater gradually, from 56% in 2014 to 78.5% in 2019, and 84% in 2020.

To manufacture synthetic graphite is to calcine needle coke, petroleum coke, pitch coke at a certain temperature first, and then go through the process of smashing, grading and high temperature graphitization.This is a high-energy-consuming industry, with power expense accounting for 60% of graphitization cost.Therefore, graphitization industry mainly lies in regions abundant in power resource such as Inner Mongolia, Sichuan,Shanxi and Yunnan.Inner Mongolia, in particular, becomes a key area for domestic anode graphitization because of the low rate in power price, accounting for 46% of total domestic capacity.

In the first of this year, factors including“double control” and environmental protection led to a reduction in capacity release in main producing area of anode graphitization in Inner Mongolia, i.e.only 85% of capacity was released.The shortage of anode graphitization supply intensified due to other factors such as winter heating and Olympic Winter Games.

3.Silicon-based anode

The industrialization of silicon-based anode just started in domestic market, with a lot of technologies to be developed.The market scale is small, development is slow and market penetration is poor.The shipment of silicon-based anode materials in Chinese lithium battery industry in 2020 was 9000 tons, accounting for just 2% among all anode materials, far inferior to the market share of graphite anode materials.

(2)Silicon base might be the upgrading direction

1.Silicon-based anode relies on its theoretical capacity of 4200mAh/g to become the ideal upgrading product

High-end graphite has the capacity of 360-365mAh/g, very much approaching theoretical capacity of 372mAh/g.Energy density of single power battery is not able to reach 300Wh/kg; silicon-based anode relies on its theoretical capacity of 4200mAh/g to become the ideal next-generation upgrading product.

Silicon-based anode boasts huge development potentials relying on its superhigh theoretical capacity, lower delithiation potential, rich silicon reserves and low production cost.In the context where requirements have been enhanced for energy density of lithium batteries, and high-nickel system of battery manufacturers has grown mature, graphite anode system is developing into the direction of silicon-based anode system.

However, silicon-based anode has the vulnerability of easy expansion, being liable to loss of materials and poor cycle performance.These problems demand prompt solutions.

2.An estimation of 40% five-year CAGR

In the field of silicon-based material, the market scale is small, development is slow and market penetration is poor.The shipment of silicon-based material in our country in 2018 and 2019 was respectively 2600 tons and 3700 tons, with less than 1.4%penetration rate; a steady growth was seen in 2020, with shipment achieving 9000 tons and market penetration achieving 2.5%.

As a new material receiving great expectations to replace graphite anode with its outstanding capacity, silicon-based anode material will reach a much bigger market scale once related technologies bottleneck are broken.It is estimated that siliconbased anode material is going to get widely developed in 2023 to 2025.The application of the combination of silicon-based anode and high-nickel ternary battery is going to increase, with the five-year CAGR of 40%.In 2025, silicon-based anode will occupy a market share of 10% in domestic market.

3.Concentration Rate is High, and the Pattern of “Four Big Companies and Many Small Companies” is Formed

(1)China is an important supplying country in global anode material sector; TOP 4 companies are Chinese companies

China is an important supplying country in global anode material sector, with 80%of global anode material industry based in China.

The leading Chinese companies engaged in lithium battery anode material are:BTR, Zichen, Shanshan Company, Kaijin,China Science Group, XiangFengHua,ShangTaiTech, ZhengTuo, Nationz Technologies.

In 2020, there were seven Chinese companies among all TOP 10 shipment companies globally, and all of TOP 4 were Chinese companies.Specifically, BTR, as the biggest global anode material manufacturer,accounted for 14% globally.There were three overseas companies whose anode material production exceeded 10000 tons:Hitachi, Pohang and Mitsubishi.Their total production was 66000 tons, accounting for 86% of total overseas production.

(2)Concentration rate is high, and the pattern of “Four Big Companies and Many Small Companies” is formed

The pattern of oligopoly is formed in Chinese anode material industry.TOP 3 companies accounted for 53% market share.Specifically, natural graphite CR5 accounted for 84% (TOP 5 companies market share),and synthetic graphite CR5 accounted for 80%.

BTR, Shanshan, Zichen and Kaijin are enjoying a relatively stable pattern, helping to lay the foundation of the pattern of “Four Big Companies and Many Small Companies”.

Zichen, Shanshan and Kaijin are three giants in synthetic graphite, totally accounting for 63% market share.BTR is the absolute leading company in natural graphite anode, accounting for 60%.Meanwhile, BTR is the first company making deployments in silicon-based anode in China.BTR got the three-star certificate in 2013.Its capacity is 3000 tons and it can realize bulk supply.

From the perspective of comprehensive supply capacity, BTR well deserves the reputation of the “leading player” in the industry.Its sales volume of anode material ranks the first for 7 consecutive years, supplying downstream customers including Panasonic, LG, Samsung,Sony and BYD.BTR is the principal supplier of Panasonic.

Jiangxi Zichen is the company boasting the biggest shipment volume in domestic synthetic graphite market.Zichen greatly improved competitiveness by reducing cost with the help of self-capacity-development.It is one of the core suppliers of CATL.More than that, it also supplies famous domestic and overseas highend lithium battery manufacturers including ATL, LG Chemicals, Samsung SDI and BYD.

Shanshan Company is the leading company in synthetic graphite in domestic market, with the market share of 10%, supplying customers including ATL, LG, CATL, BYD and Gotion High Tech.Kaijin Energy occupies the similar market share as Shanshan, mainly supplying CATL.

(3)Capacity expansion competition might change the pattern

1.Leading companies are making efforts to double their capacity

Leading companies in anode material are formulating plans to double their capacity in the context of high growth demands.Their plans are focusing on synthetic graphite.

As of the end of 2020, anode material capacity nationwide was 537000 tons, and actual shipment was 365000 tons, indicating a rather tense capacity; after capacity expansion, it is estimated that anode material capacity nationwide as of the end of 2022 will exceed 1300000 tons.

The last capacity expansion in the industry was conducted in 2018, after which the capacity of leading companies became excessive by July of 2020.It is estimated that the capacity expansion the industry is actively planning now is going to be implemented around 2023.The capacity expansion in Chinese anode material industry will grow steady in 2025,with the capacity of 3320000 tons then.

2.Competition among companies is getting fierce driven by market opportunities

On the whole, the concentration rate of anode material industry is still very high, and the pattern still features oligopoly.The pattern will divide gradually as the capacity expansion drives industrial competition.Synthetic graphite market will take on a new pattern of duopoly, i.e.Shanshan VS Zichen, while BTR is vigorously catching up relying on its quality customers.From the perspective of capacity expansion and comprehensive competitiveness,the industrial pattern will evolve from “Four Big Companies and Many Small Companies”to “Two Big Companies and Four Mediumsized Companies”.

In the first half of 2021, BTR and Zichen continued to rank TOP 2 with high market share, respectively 19.4% and 14.1%.It is estimated that their year-end production of anode materials will both exceed 100000 tons.Additionally, they will steadily stay TOP 2 within the future three years in terms of market scale and comprehensive strengths.Shanshan, Kaijin, ShangTaiTech and China Science Group are the “four mediem-sized companies” mentioned above.It is estimated that the shipment of the four companies in the second half of this year will be 40000 tons-60000 tons, and the year-end shipment will be 50000 tons-100000 tons.With the capacity expansion being completed, it is estimated that the competition of the four companies in the ranking of market share and comprehensive strengths will become more fierce.

3.Concentration rate tends to decline

From the perspective of competition pattern,the market share of TOP 3 companies in Chinese anode market reduced from 57% in 2019 to 53% in 2019, and further to 49% in the first half of this year.The reason is that the demand resonance in downstream market drove the demands for anodes and led to a bigger range of products in the second half of the year, while the capacity of leading anode manufacturers was insufficient after they reached their full capacity.Therefore,companies of the second and the third echelon had the opportunities to improve their capacity utilization.Additionally, small power lithium battery industry and communication energy storage lithium battery industry do not have high requirements for the performance of anode materials.Some price-sensitive manufacturers tend to choose products made by the companies of the second and the third echelon in the first place.These factors will lead to lower concentration rate in anode material industry.Meanwhile, with the expansion of capacity this year, new companies started to get involved in the industry for sporadic purchasing orders.Leading companies increased their capacity by around 20000-50000 tons in 2021, and the capacity of new companies was 65000 tons,which will inevitably lead to further reduction in concentration rate.

4.There is Huge Development Potentials in the Industry; Technology Trend Becomes the Focus

The rapid development of NEV industry has brought about huge development potentials in anode materials.Great attentions have to be paid to technology trend.In medium term,graphite/synthetic graphite anode still has predominance.However, such pattern is going to change in the long run.

1.The industrialization process of siliconbased anode is accelerating

During “the 14th Five Year”, with the improving of the market share of lithium iron phosphate battery, graphite anode is likely to retain predominance in anode materials relying on its low cost.However, as the requirements for energy density grow higher in ternary material field, the combination of siliconbased anode and high-nickel ternary material might become a new development direction.The industrialization of silicon-based anode is dawning as the technologies of high-nickel materials and other supporting materials get more developed.The current pattern of market might be broken and restructured at that time.

2.There might be an overhaul in the future

The prospect of anode material technology routes in the long run: Full solid lithium battery might use lithium metal as its anode,thus leading to an overhaul in the entire anode material industry in the future.

Baotou Rare Earth High-Tech Zone:Striving to Construct A Whole Rare Earth Industry Chain

Baotou Rare Earth High-Tech Zone boasts a complete industry chain that features obvious agglomeration effect.It also boasts a complete rare earth industry system that covers rare earth raw material, new material, and terminal utilization.Five industrial development directions have been initially planned out,i.e.rare-earth permanent magnet, hydrogen storage, polishing, catalyzing and alloy.The Zone is the base for many leading companies and backbone companies, including North Rare Earth, RareAlloys, Tianjiao Seimi,Tianhe Magnets and Chang’an Permanent Magnet.So far, there are 99 rare earth industry companies, including 61 rare earth new material companies and 30 rare earth terminal utilization companies.Rare earth new material companies and rare earth terminal utilization companies take up the proportion of 92%.The Zone has introduced and established Baotou Rare Earth Research Institute, Baotou Material Research Institute of Shanghai Jiaotong University, Baotou Rare Earth R&D Center of Chinese Academy of Sciences, and Inner Mongolia Rare Earth Functional Materials Innovation Center.As a result, the technical innovation ability of rare earth industry has been greatly improved.

50 companies operating rare earth permanent magnet are based in the Zone, forming a diversified development pattern covering sintering permanent magnet, bonded permanent magnet, samarium cobalt permanent magnet and cerium iron boron magnet.Specifically,there are 20 companies operating rare earth permanent materials, including JLMAG,Earth Panda, Tianhe Magnets, YunSheng Strong Magnet, Jinshan Magnets; there are 17 companies operating rare earth permanent magnet post-processing components and supporting business, including Inst Magnetics,Hengyu Mag Source, Honghaoxinda; there are 13 companies operating magnet material application, including CRRC Electric,Chang’an Permanent Magnet, Zhongke Intelligence, Jiangxin Micromotor and XBO,and covering terminal products such as wind power robot, mobile phone camera and medical equipment.Design capacity of rare earth permanent magnet materials reaches 65000 tons.The output of rare permanent magnet alloy materials in 2020 was 12351 tons, up by 34%.The output of rare permanent magnet workblank materials was 17127 tons,up by 34%.Output value of permanent magnet materials accounted for 90% of that of rare earth new materials.

There are 8 companies operating rare earth hydrogen storage, including 4 operating rare earth hydrogen storage materials, i.e.Xi’aoke,Santoku Battery, Zhongke Xuanda, Xinpu New Material; including 4 operating rare earth hydrogen storage application, i.e.Ni-MH battery companies like Haoming New Power Supply, Xi’aoke Battery, Longfame Battery.A comprehensive Ni-MH battery industry chain covering rare earth hydrogen storage materials and downstream rare earth Ni-MH battery is being constructed.Design capacity of rare earth hydrogen storage materials reaches 10000 tons.The output in 2020 was 2438 tons,ranking TOP 1 nationwide and accounting for over 30% across the country.There are 10 companies operating rare earth polishing,including Tianjiao Seimi, Haorui Rare Earth,Hailiang Technology, Zhongke Yuhang, Lichen Technology, and Xinyu Rare Earth, gradually forming an industry chain covering rare earth lanthanum cerium and rare earth polishing.Design capacity of rare earth polishing material reaches 36000 tons.The output in 2020 was 11161 tons, ranking TOP 1 nationwide and accounting for over 35% across the country.

There are 5 companies operating rare earth catalyzing materials and device, including catalytic additives from Xijie Huanbao, catalyst from Long Term, rare earth catalyst used for synthetic rubber and medicinal rare earth catalyst from Zhongke Mengxi New Material;rare earth additives products include PVC heat stabilizer from North Rare Earth; rare earth colorant products include rare earth colorant from Zhongke Century.An industry chain covers rare earth lanthanum cerium-rare earth catalyzing, additives and colorant materials has gradually been completed.There are 6 companies operating rare earth alloy materials,including rare earth bearing steel and rare eath special steel from Zhongke Rare Earth Special Steel Innovation Center, rare earth titanium alloy from Jiatai Metal, rare earth aluminum alloy from Huijin New Material, and color rare earth stabilized zirconia nano powder from Kingtor Zirconium.The application of rare earth has been continuously extended to the fields of steel, aluminum and copper.A solid development foundation featuring the combination of rare earth and alloy is being constructed.

Shengda Resources and Dingshengxin Mining Entered into Acquisition Agreement of Guizhou Zhugongtang Lead-Zinc Ore

On November, 23rd, Shengda Resources and Guizhou Dingshengxin officially entered into the acquisition agreement of Guizhou Zhugongtang lead-zinc ore in Beijing Shengda Building.Chairman of the board of Shengda Resources, Zhu Shengli, Vice Chairman of the board of Shengda Resources, Zhao Qing,and Chairman of the board of Dingshengxin Mining, Dong Ying and Bai Guanghui, were present at the signing ceremony.Journalists from media companies and lawyers from law firms came together to witness the moment.

As a leading company in silver industry,Shengda Resources boasts the silver reserves of nearly 10000 tons and the dressing capability of nearly 2 million tons, with the consolidated gross margin of over 60%.Shengda Resources has been sticking to its principal business and seeking sustainable and steady development since its establishment.

Zhugongtang lead-zinc ore is a rarely seen big quality polymetallic ore mine in China so far.It won the reputation of “TOP 10 geological prospecting fruits” granted by Geological Society of China in 2018, and it is also the first super-large lead and zinc deposit in Guizhou.Specifically, the part of Zhugongtang lead-zinc ore, whose reserves has been clearly exploited currently, already achieved the scale of superlarge deposit.The mining right area is 15.5306 square kilometers, the metals to be exploited are zine, lead, silver, sulphur, gold, copper,gallium, germanium, cadmium, selenium and pyrite, and the production scale is 1980000 tons per year.Zhugongtang lead-zinc ore ranks among the best in Guizhou in terms of resource occupancy and dressing capability,and it is a rarely-seen high quality resource in the industry.

Based on this agreement, the both parties will give play to their own strengths and characteristics to generate cooperative fruits.It can be called as the model cooperation in mining sector of capital market.Zhugongtang lead-zinc ore boasts huge resource reserves and outstanding natural endowment.According to information, the filed amount of lead and zinc is as high as 3270000 tons, and the average ore grade is 8.97%.In addition, high concentration of its ore body makes it easier to exploit on a large scale and with low cost.The amount of zinc in Zhugongtang lead-zinc ore is 2460600 tons, with the average grade of 6.74%; the amount of lead is 813800 tons,with the average grade of 2.23%.Besides, the amount of silver is about 830 tons.After the acquisition, Shengda will have an increase of 166% and 210% in its lead resource reserves and zinc resource reserves.Totally, its lead and zinc resource reserves will achieve 5030000 tons, rising to TOP 4 in A share market.The Company’s production of lead and zinc will surge from 50000-ton level (30000 tons of zinc production and 20000 tons of lead production)to 200000-ton level, rising to the first echelon in A share market.In addition to big reserves, the ore boasts huge potentials in reserve increase.According to information, the mining right area of Zhugongtang lead-zinc ore is 15 square kilometers.So far the exploring activities concentrate within 5 square kilometers.The potentials in reserve increase are huge in the future.

The ore will also make substantial contributions to Shengda in terms of profits.Based on announcements, it is estimated that Phase One dressing plant will be put into operation in 2023; Phase Two dressing plant will be put into operation in 2025, with the capacity of 1980000 tons/year.The annual production of lead and zinc of this project is likely to reach 200000 tons, creating an increase of 400% for the Company’s annual lead and zinc production.When the time comes, Zhugongtang lead-zinc ore is going to generate substantial returns for the Company,which can provide Shengda Resouces with stable cash flow for its assets optimization,help the Company to realize financial indicator improvement and raise its position in lead and zinc industry with enhanced competitiveness.The Company will take on a new look.

Zinc is widely applied in auto, architecture,household appliances, shipping, light industry,mechanical engineering and battery and so on.The demands will rise in the medium and long run as economy recovers.China has a relatively small amount of basic reserves of zinc ore in upstream industry.China is an important country in zinc production and zinc consumption in the world.We greatly rely on import of zinc and zinc products, and there is a deficit in import and export trade.In the meantime, the supply end of zinc is flexible and the price has cost support.Stock replacement demands at the consumption end are robust.The surge in production and sales of electric bicycles and automobiles will also promote the consumption.

Our nonferrous industry continues to recover this year.Investments in fixed assets return to positive growth and the price of nonferrous metals remains high and volatile.The price of zinc rose from RMB 20250/ton at the beginning of the year (January - February)to the current RMB 23000/ton.As a matter of fact, it is the continuous increase in price of lead and zinc since this year that drives the performance growth of Shengda in the first three quarters.As is shown Q3 report, the Company’s net profit attributable to parent company presented a YOY growth of 35.74%;net profit after deducting non-recurring profit and loss soared by 161.5% on a YOY basis.

Raw ores are the basis for Shengda Resources,and actively seeking subject matter acquisitions of synergistic effects is an important path for the Company to continuously develop resources and improve competitiveness.Shengda Resources had purchased silver mines for consecutive 4 years, which helped it to achieve the silver reserves of nearly 10000 tons, thus laying the foundation for its leading position.The acquisition of Zhugongtang lead-zinc ore will facilitate the formation of resource advantages for the Company in industrial metal sector, and the business will grow that is characterized by precious metals developing as the core roles (such as silver and gold), and industrial metals advancing side by side (such as lead and zinc).The Company is going to have leapfrog development.

Historically, the great successes of Shengda Resources are owed to two factors: Firstly,having a great management team that boasts strategic vision, the Company has completed counter-cyclical acquisitions for many times,and this helped to enhance resource advantages continuously.Secondly, with professional mine operation and management and dressing and smelting technologies, the Company is able to explore and operate mines with low cost.Meanwhile, high efficient operation and strong executive capability can swiftly translate resources into benefit.

According to Shengda Resources, mining industry is an industry with obvious cyclicity,and earning performance obviously varies based on fluctuations in major cycle and minor cycle of different minerals.In the future, the Company will rely on its outstanding silver,lead and zinc reserves, technical development and innovation, and high efficient low-cost management capability to accelerate technical transformation and capacity improvement, and excavate internal potentials.The Company will also further give play to synergic effects generated by the acquisition of Zhugongtang lead-zinc ore to continuously enhance corporate competitiveness in the industry.

Huayou Cobalt Plans to Work With Xingfa Group to Construct New Energy Lithium Battery Material Whole Industry Chain Business Including 500000-ton Lithium Ion Phosphate

Huayou Cobalt (603799.SH)made announcement at the beginning of November that the Company plans to enterer into Cooperation Framework Agreement with Hubei Xingfa Chemical Group Co.LTD(Xingfa Group)in Yichang, Hubei.

The both sides agree to enter into cooperation that covers the whole industry chain of new energy lithium battery material.They decided to follow the principle of implementing the only one overall plan step by step to invest in an integrated industry involving phosphorite dressing, phosphorus chemical industry,phosphoric acid by wet process, iron phosphate and lithium iron phosphate material in Yichang,Hubei.They aim to construct the capacity of producing 500000 tons of iron phosphate per year and 500000 tons of lithium iron phosphate per year and supporting projects.

According to information, the Company adjusted its development strategy programming for its “14th Five-Year Plan”, i.e.focusing on lithium battery new energy material industry.Lithium iron phosphate is an important technical route in lithium battery cathode material.Therefore, making deployment in lithium iron phosphate is conducive for the Company to build a new energy lithium battery industry ecology that is more completed and more competitive.

Xingfa Group is a domestic well-known fine phosphorous chemical company.The Company’s working with Xingfa Group to invest in an integrated industry involving phosphorite dressing, phosphorus chemical industry, phosphoric acid by wet process,iron phosphate and lithium iron phosphate material will be conducive for the both parties to give full play to their strengths in resource,technology and industry chain, so that they are able to build a lithium iron phosphate material industry chain that is globally competitive and promote a quality development for the Company.