Wanhua Chemical has made further progress on its battery materials projects in Binzhou, Shandong Province. On October 9, 2026, Wanhua (Binzhou Zhanhua) New Energy Materials Technology Co., Ltd. was established with registered capital of RMB 240 million. The company is jointly owned by Wanhua Chemical (Yantai) Battery Industry Co., Ltd. and Chongqing Terui New Energy Materials Co., Ltd. Its business scope includes R&D of electronic materials, manufacturing of graphite and carbon products, and technical services for wind and solar power generation.
A key aspect of the new joint venture is Chongqing Terui. Its parent company, Chongqing Terui Battery Materials Co., Ltd., has long been engaged in the R&D and production of lithium iron phosphate (LFP) and ternary cathode materials. For Wanhua, which is advancing battery materials projects in Binzhou, bringing in a partner with cathode materials production experience has greater industrial significance than simply establishing another project entity.
Since the beginning of 2026, Wanhua has been advancing projects in Binzhou with planned annual capacities of 70,000 tonnes of battery-grade lithium carbonate and 160,000 tonnes of LFP. The establishment of the joint venture has drawn further attention to the development of the local battery materials value chain.
Wanhua Brings in Chongqing Terui to Strengthen Cathode Materials Cooperation
Chongqing Terui New Energy Materials Co., Ltd. was established in March 2016 and is a wholly owned subsidiary of Chongqing Terui Battery Materials Co., Ltd. Founded in 2007, its parent company primarily produces LFP and lithium nickel cobalt manganese oxide (NCM) cathode materials. It is recognized as a National-Level Specialized and Sophisticated SME that Produces New and Unique Products and as a High-Tech Enterprise in China.
The significance of Wanhua's partnership with Chongqing Terui lies in bringing specialized production experience into its cathode materials projects. Wanhua has expertise in the construction and operation of large-scale chemical projects, while Chongqing Terui has long focused on cathode materials R&D and manufacturing. Their respective capabilities provide a basis for industrial collaboration. For Wanhua's planned LFP project, this cooperation could help connect engineering and construction with materials manufacturing.
The new company's business scope also includes the manufacturing of graphite and carbon products. However, this alone does not establish that it will produce lithium-ion battery anode materials. Based on the information currently available, Chongqing Terui's background in cathode materials is the more direct starting point for understanding the joint venture.
70,000 Tonnes of Lithium Carbonate and 160,000 Tonnes of LFP: Binzhou Projects Move Forward
On December 4, 2025, the Binzhou municipal government signed an agreement with Wanhua Chemical for a battery materials and green power industrial park project. In 2026, Wanhua successively established related project companies and advanced environmental impact assessment procedures and engineering preparations for its lithium carbonate and LFP projects.
| Date | Project Development | Key Information |
|---|---|---|
| December 4, 2025 | Agreement signed for the Binzhou battery materials and green power industrial park | Launch of the Binzhou development |
| June 5, 2026 | Two new energy-related companies established in Binzhou | Registered capital of RMB 190 million and RMB 510 million, respectively |
| June 16, 2026 | Public consultation draft of the lithium carbonate project's environmental impact assessment released | Planned annual capacity of 70,000 tonnes of battery-grade lithium carbonate |
| August 4, 2026 | Two additional project companies established in Binzhou | Registered capital of RMB 400 million and RMB 700 million, respectively |
| August 27, 2026 | First public notice issued for the LFP project's environmental impact assessment | Planned annual capacity of 160,000 tonnes of LFP |
| October 9, 2026 | New joint venture established for new energy materials | Registered capital of RMB 240 million, with Chongqing Terui New Energy Materials as a partner |
From project planning to engineering procurement, Wanhua's Binzhou base is gradually moving into the construction phase. The two planned projects, with annual capacities of 70,000 tonnes of lithium carbonate and 160,000 tonnes of LFP, cover the lithium salt and cathode materials segments, respectively. Together, they provide a foundation for better coordination between raw material supply and materials manufacturing.
The Key to Binzhou: Integrating Raw Materials, Manufacturing and Energy Costs
Competition in the battery materials industry is no longer determined by capacity expansion alone. A company's competitiveness increasingly depends on whether newly built capacity can sustain stable production and deliver cost advantages in raw materials, manufacturing and energy.
The lithium carbonate project could help Wanhua strengthen its upstream lithium salt supply. Lithium carbonate is an important raw material for LFP production. Advancing both projects in Binzhou could help Wanhua coordinate raw material procurement, logistics and production planning while reducing coordination costs between different stages of manufacturing. Given the impact of lithium salt price fluctuations on cathode materials costs, upstream supply capabilities are also an important factor in cost control.
Chongqing Terui's participation adds specialized expertise in cathode materials manufacturing. Building production facilities alone does not guarantee competitiveness in cathode materials. With its longstanding experience in R&D and production, Chongqing Terui could help bring materials manufacturing expertise into the Binzhou project and improve the transition from construction to large-scale production.
Green power infrastructure is another important factor in the competitiveness of the Binzhou project. Battery materials manufacturing is sensitive to the reliability and cost of energy supply. Developing the projects within a green power industrial park could facilitate coordination between electricity supply and materials production, helping reduce overall energy costs. Supporting infrastructure, including natural gas pipelines and other utility facilities, is also under development.
Taken together, these elements serve complementary roles. Upstream lithium salts provide raw material support, the cathode materials project covers the manufacturing stage, the specialized partner contributes production expertise, and energy infrastructure supports continuous operations and cost control. Compared with simply expanding capacity for a single product, this integrated industrial base could help Wanhua coordinate different stages of production and improve overall operating efficiency.
LFP has become a key area of development within Wanhua Chemical's battery materials business. The participation of Chongqing Terui in the Binzhou project further strengthens the area's materials manufacturing capabilities. By developing lithium salts and cathode materials in tandem and incorporating green power infrastructure to manage production costs, Wanhua is strengthening the integration of its battery materials value chain.
