Invest 32 billion! Industry giants plan to build an integrated material park to lay out phosphorus resources!

Recently, Ningde Times New Energy Technology Co., Ltd. (hereinafter referred to as "Ningde Times"), a leading global power battery company, issued an announcement that the company plans to invest in the construction of Bangpu Integrated Battery Materials Industrial Park in Yichang City, Hubei Province. Supporting the construction of chemical raw materials projects, the total investment amount of the project does not exceed RMB 32 billion.

At the symposium before the signing ceremony, Hubei Provincial Party Secretary Ying Yong stated that Hubei is accelerating the construction of five trillion-level modern industrial clusters including the automobile industry. In recent years, the new energy automobile industry in Hubei has developed rapidly, and the construction of Wuhan National New Energy and Intelligent Connected Automobile Industry Demonstration Base has been accelerated. Hubei has rich reserves of phosphate resources and a solid foundation for the phosphorus chemical industry. It has outstanding advantages in promoting the agglomeration and development of the power battery industry. We welcome Ningde Times to deepen cooperation with Hubei, focus on new materials, new energy and other fields, work together to grasp the development of the new energy automobile industry, accelerate the completion of the project in Hubei, and help Hubei's automobile industry to replenish the chain and extend the chain.

Zeng Yuqun briefly introduced the Ningde era's business development, investment layout in Hubei and future development plans. He said that CATL is firmly optimistic about Hubei and has full confidence in the investment and development in Hubei. It will focus on Yichang’s industrial development positioning, and take the opportunity of project signing to increase the use of new energy vehicle power batteries, energy storage, and intelligent electrification scenarios. Cooperate with Hubei to promote the integration of resource elements, create a cycle system for the entire battery industry chain, and contribute to the comprehensive green transformation of Hubei's economic and social development. At the same time, Hubei Yichang Municipal Government, Yichang High-tech Zone Management Committee, and Hubei Yihua Group have signed cooperation agreements with Ningde Times Holding Subsidiary Guangdong Bangpu Recycling Technology Co., Ltd. and its holding subsidiary Ningbo Bangpu Times New Energy Co., Ltd. respectively.

According to the agreement, the Bangpu Integrated Battery Material Industrial Park project with a total investment of about 32 billion yuan will be settled in Yichang. The project takes the cathode material for the power battery of new energy vehicles as the core, covers the full life cycle of the battery, and builds a production base that integrates "phosphate rock-raw material-precursor-cathode material-battery recycling" and other multi-link businesses.

Li Changdong, chairman of Guangdong Bangpu Recycling Technology Co., Ltd., and Wang Yinghua, deputy mayor of Yichang, signed the agreement on behalf of both parties. Hubei Provincial Party Secretary Ying Yong, Governor Wang Zhonglin, Vice Governor Cao Guangjing, Yichang Municipal Party Secretary Wang Li and Ningde Times Chairman Zeng Yuqun witnessed the signing. CATL is the world's leading lithium-ion battery R&D and manufacturing company. Its business includes R&D, production and sales of new energy vehicle power battery systems and energy storage systems. Headquartered in Ningde City, Fujian Province, China, it has deployed battery manufacturing bases in many resource-heavy locations across the country, and has subsidiaries in Germany, France, Japan, and the United States. A month ago, CATL invested 13.5 billion yuan in Yichun, Jiangxi, to build a new type of lithium battery manufacturing base (Yichun) project.

Hubei is one of the provinces with the most complete automobile industry chain and abundant reserves of phosphate rock resources. At present, China's proven phosphate reserves are 3.3 billion tons, ranking second in the world. Phosphate mines in China are mainly distributed in five provinces including Hubei, Yunnan, Guizhou, Hunan and Sichuan, with reserves accounting for about 80% of the country's total. Among them, Hubei has the largest phosphate reserves in the country, reaching 6.34 billion tons, accounting for 29.4%. The Bangpu Integrated Battery Material Industrial Park project is located in Yichang, Hubei, which is conducive to further improving the strategic layout of the Ningde era in the lithium battery new energy industry, giving play to the advantages of industrial synergy, and ensuring the company's battery material supply.

It is worth mentioning that Hubei Yihua, the partner of the Ningde era, is a leading listed company in China's phosphate chemical industry. It has mining rights to produce 1.3 million tons of phosphate ore annually in Yichang, Hubei and Sichuan. Affected by the news of cooperation, Hubei Yihua's volume of trading was 3.47 billion today, a strong daily limit. As of today's close, it was reported at 21.02 yuan, with a total market value of 18.87 billion. Hubei Yihua stated that the company’s cooperation with Ningbo Bangpu to build an integrated battery material project will help the company seize the development opportunities in the new energy market, optimize and upgrade the layout of the phosphorus chemical industry chain, and leverage the synergistic effects of coal chemical industry, phosphorus chemical industry, and chlor-alkali chemical industry. Improve the company's market competitiveness and sustainable profitability.