Fujian Zhongtan New Material Technology Co., Ltd. has officially commenced the equipment installation phase for its project aimed at producing 20,000 tons of lithium battery anode coating material annually. With a total investment of approximately 260 million yuan, the project utilizes ethylene tar as a raw material to manufacture anode coating materials for lithium batteries used in the power, consumer, and energy storage sectors. The project is set to be executed in two phases, with the first phase expected to be completed by March this year.

The rapid growth of the new energy industry presents unprecedented opportunities for lithium batteries, a critical component in this sector. In Fujian province, the lithium battery new energy industry is a burgeoning and competitive field, with total revenue from lithium battery manufacturing reaching 381.4 billion yuan in 2023. By September of last year, the province had established and operationalized a lithium battery production capacity of approximately 400 GWh (gigawatt-hours), equivalent to 1 million kilowatt-hours per GWh. The industry comprises over 200 companies, encompassing the entire supply chain, including cathodes, anodes, separators, electrolytes, copper foil, and aluminum foil. Anode material is one of the four essential raw materials for lithium batteries, playing a crucial role in determining the battery's energy density, initial efficiency, safety, and cycle performance.

"The Gulei Petrochemical Base offers a remarkable geographical advantage with convenient sea and land transportation. Meanwhile, the industry chain is becoming increasingly mature, facilitating the high value-added utilization of refining by-products." Xu Xiaoqiong, Chairman of Fujian Zhongtan New Material Technology Co., Ltd., stated that after the commissioning of the first phase of the Zhongtan project, ethylene tar raw materials will primarily be supplied by Fujian Gulei Petrochemical Company Limited within the base. During the planning of the second phase of the project, comprehensive consideration was given to the Zhongsha Gulei Ethylene Project and the second phase of the Gulei Refining and Chemical Integration Project, both of which are to be established at this base. By that time, the raw materials for the two phases of the Zhongtan project will be primarily sourced internally, significantly reducing costs.

Before Fujian Zhongtan was established, ethylene tar, a byproduct of ethylene cracking at Fujian Gulei Petrochemical Company Limited, had to be shipped out for sale. Once the first phase of the Zhongtan project is operational, it will fully utilize the annual byproduct of ethylene tar produced by Fujian Gulei Petrochemical Company Limited.

"The ethylene tar required for the first phase of the project is about 50,000 tons per year, which coincidentally matches the by-product output of the current ethylene plant at Fujian Gulei Petrochemical Company Limited. This means that the ethylene tar by-product from Fujian Gulei Petrochemical Company Limited can be fully utilized by Zhongtan," said Xu Xiaoqiong.

Currently, the Zhongtan project's single-line production capacity can reach 7,500 tons per year. The reporter learned that the company's production of anode coating materials includes a "unique secret": a small amount of proprietary process products can be used to produce general-purpose asphalt-based carbon fibers. These fibers are lightweight, high-strength, corrosion-resistant, and fatigue-resistant, making them ideal for applications in aerospace, automotive, construction, and other fields. In the future, this will become a new growth point for Fujian Zhongtan.

"Energy conservation and emission reduction are the trends of the times. By 2033, the penetration rate of new energy vehicles will exceed 60%. The energy storage market will also experience rapid growth alongside the development of industries such as base stations and photovoltaics, offering a promising future for anode materials," said Xu Xiaoqiong.

Translated by Fujian Investment Promotion Center