CNNC Titanium Permanently Redirects 1.666 Billion Yuan Ending Two Major Projects

On June 2, CNNC Titanium (002145) announced the termination of two key projects from its 2021 non-public stock issuance: the 50,000-ton/year Phosphoric Acid Iron Project and the 50,000-ton/year Water-Soluble Monoammonium Phosphate (MAP) Project. The remaining 1.666 billion yuan of funds will be permanently reallocated to working capital to support daily operations and business growth.

Launched in 2021, both projects aimed to leverage Baiyin’s abundant coal and electricity resources to recycle by-products like acid waste and fly ash for high-end rutile titanium dioxide production. The MAP project focused on acid waste recycling, while the phosphoric acid iron project utilized MAP and ferrous sulfate to produce lithium iron phosphate, a critical material for LiFePO4 batteries.

Despite initial progress, including the completion of a 10,000-ton/year phosphoric acid iron production line and basic infrastructure, CNNC Titanium cited weakened downstream demand and raw material cost pressures as reasons for termination. Shifts in the MAP and phosphoric acid iron markets, including rising input costs and slower demand growth, reduced the projects' profitability to below expectations.

In 2024, domestic LiFePO4 battery market competition led to a 20% price drop, while fertilizer prices fell 10% due to supply-demand shifts and policy constraints.

CNNC Titanium remains a key titanium dioxide supplier with an annual capacity of 550,000 tons and recorded 68.75 billion yuan in revenue in 2024, including 58.37 billion yuan from titanium dioxide sales of 428,400 tons, up 33.44% year-on-year.