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 project with an annual production capacity of 5,000 tons of advanced lithium supplement agents, with a total estimated investment of 820 million yuan.

The announcement explains that the capacity expansion project for 50,000 tons of lithium hexafluorophosphate will upgrade and expand the existing 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 construction is expected to run from March 2026 to December 2027, funded by self-raised capital. The new project to produce 5,000 tons of advanced lithium supplement agents aims to establish an annual capacity of 5,000 tons. Its construction is 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 current capacity bottlenecks through process upgrades, matching the rapid growth of downstream markets such as new energy vehicles and energy storage. 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, which not only helps the company enter high-growth new material sectors but also provides strong support for building differentiated competitive advantages in next-generation lithium battery materials,” Yongtai Technology said. The implementation of this project will help the company 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. The impact on the company’s 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 a 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. Its main products are categorized by end-use applications into pharmaceuticals, plant protection, lithium batteries, and other materials. Since 2025, driven by the rapid demand release in the new energy vehicle and energy storage industries, and the notable effects of “anti-involution” in the lithium industry, Yongtai Technology’s core lithium battery material sales and prices have both increased significantly year-over-year. According to its 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 substantial reduction in losses year-over-year.