Total Investment of 820 Million Yuan, Yongtai Technology Plans to Increase Capacity for Lithium Hexafluorophosphate and Novel Lithium Supplement Agents

On March 13, Yongtai Technology (002326.SZ) announced an update regarding new construction projects for its subsidiaries. The announcement states that Yongtai Technology’s subsidiary, Shaowu Yongtai High-tech Materials Co., Ltd., plans to invest 550 million yuan to upgrade and expand its existing capacity to produce 50,000 tons of lithium hexafluorophosphate annually. Additionally, it will invest 270 million yuan to build a new 5,000-ton lithium supplement agent project, with a total estimated investment of 820 million yuan.

The announcement explains that the 50,000-ton lithium hexafluorophosphate capacity expansion project will upgrade and expand the current production line of approximately 18,000 tons per year. After completion, the company aims to establish an annual production capacity of 50,000 tons of lithium hexafluorophosphate (solid salt). The project is expected to be built from March 2026 to December 2027, funded by self-raised capital. The 5,000-ton lithium supplement agent project aims to establish an annual production capacity of 5,000 tons, with construction scheduled from June 2026 to December 2028, also funded by self-raised capital.

Regarding the purpose of this investment and its impact on the company, Yongtai Technology stated in the announcement that the lithium hexafluorophosphate upgrade project aims to break through existing capacity bottlenecks through process upgrades, matching the rapid growth of downstream new energy vehicle and energy storage markets. It also seeks to optimize cost structure and increase the self-supply ratio of core raw materials to strengthen the industrial chain synergy.

Yongtai Technology pointed out that the new lithium supplement agent, as an innovative “lithium carrier molecule,” can precisely replenish active lithium lost during battery cycling, significantly extending battery life and restoring capacity. This material can be used for repairing old batteries and manufacturing new ones, including liquid, semi-solid, and solid-state batteries. Currently, its main application is during battery manufacturing, where it is added in the cathode or electrolyte to compensate for irreversible lithium loss caused by SEI film formation during the first charge and discharge. This process can effectively improve the initial Coulombic efficiency and energy density of batteries, optimize cycle stability, and significantly extend lifespan.

“This new lithium supplement agent project will further improve the company’s entire lithium battery material industry chain layout. This layout not only helps the company enter the high-growth new material sector but also provides strong support for building a differentiated competitive advantage in next-generation lithium battery materials,” Yongtai Technology said. The company added that the project implementation will help further consolidate and expand its current market share and effectively develop new revenue streams, injecting new momentum for sustainable development.

Yongtai Technology also noted that the project is still in the preparatory stage and will not have a significant impact on the company’s operating results for this year. Its future financial condition and performance will depend on the progress and implementation of the project.

Recently, Yongtai Technology has accelerated its expansion. On the evening of March 2, Yongtai Technology announced plans to invest in a 200,000-ton lithium battery electrolyte project in Binhai Coastal Industrial Park, with an estimated total investment of 500 million yuan. The project will be funded by the company’s own and self-raised funds.

Public information shows that Yongtai Technology mainly focuses on the research, production, and sales of fluorine-containing fine chemicals, with products divided into pharmaceutical, plant protection, lithium battery, and other materials based on end-use applications. Since 2025, driven by the rapid demand release in the new energy vehicle and energy storage industries, coupled with the significant effects of “anti-involution” in the lithium industry, the sales volume and prices of Yongtai Technology’s core lithium battery materials have increased substantially year-over-year. According to the earnings forecast, the company expects revenue of 5 billion to 5.5 billion yuan in 2025, with a net loss of 25.6 million to 48.6 million yuan, representing a significant reduction in losses year-over-year.