On July 28, the Yantai Municipal Ecology and Environment Bureau officially approved the environmental impact assessment (EIA) documents for Wanhua Chemical (Penglai) Co., Ltd.'s 240,000-ton/year iron phosphate project, marking the formal start of construction.
Located on the reserved land for Phase II of Wanhua's Penglai Industrial Park, the project represents a total investment of approximately RMB 1.5 billion and includes the construction of a 240,000-ton/year iron phosphate production unit along with supporting auxiliary facilities and environmental protection works.
The project has progressed at a rapid pace. In February this year, it obtained the project filing certificate from Shandong Province; in April, the EIA draft was published for public comment; and on July 6, the EIA documents were formally accepted. With the EIA now approved, the project has officially entered the construction phase.
In recent years, Wanhua Chemical has positioned battery materials as its second core business and has been steadily advancing new energy materials projects. The company is currently expanding its lithium iron phosphate (LFP) production capacity rapidly in Shandong.
- The Phase I 100,000-ton/year project in Haiyang was completed and put into operation in March 2026, while the Phase II and Phase III lines, each with 200,000 tons/year, broke ground simultaneously and are scheduled for completion by the end of 2026.
- The Phase I 320,000-ton/year project in Laizhou commenced construction on March 17 and is also expected to be operational by the end of 2026.
Upon completion of the above projects, Wanhua Chemical will add a total of 820,000 tons/year of LFP capacity in 2026.
Iron phosphate is a critical precursor for LFP cathode materials. The construction of the 240,000-ton/year iron phosphate project in Penglai will further strengthen the upstream segment of Wanhua's new energy materials industrial chain, enhancing raw material supply security and reducing reliance on external procurement.
Looking at the broader strategy, Wanhua is replicating the integrated development model it pioneered in the polyurethane industry—achieving competitive advantages in new energy materials through integrated layout across resources, feedstocks, production, and material applications.
In 2026, new energy materials have become a key investment focus for Wanhua Chemical. The company's total planned investment for major projects this year is approximately RMB 27.3 billion, of which emerging materials accounts for about RMB 11.05 billion, or over 40% of the total.
