On May 30, Gimpo Titanium announced that the company plans to issue shares to no more than 35 specific targets, including the controlling shareholder Gimpo Group, and raise no more than 900 million yuan. After deducting expenses, the total funds raised will be used to build a 100,000-ton/year new energy battery material precursor and thermal energy comprehensive utilization project.
Gimpo Titanium stated that the use of funds raised from issuing shares to specific targets will help the company grasp industry development prospects and market opportunities, improve the layout of green and low-carbon recycling industries, and improve overall competitiveness. As the investment projects with raised funds are put into production, the company’s future main business product varieties will be further enriched, the business scale will be rapidly expanded, and the asset scale will be significantly increased.
Actively explore the value of the titanium dioxide industry chain
According to the announcement, Gimpo New Energy will be implemented by Nanjing Titanium Chemical Co., Ltd., a wholly-owned subsidiary of Gimpo Titanium Industry, and Huaibei Growth Small and Medium Enterprises Fund Co., Ltd. The company and Anhui High-tech Investment New Materials Industry Fund Partnership (Limited Partnership) jointly invested and established. The company owns 50.94% of Gimpo New Energy. The project construction location is Anhui (Huaibei) New Coal Chemical Composite Materials Base, and the project implementation period is one year.
Gimpo Titanium stated that by building 300,000 tons/year hydrochloric acid equipment, the project ensures the use of acid in iron phosphate equipment and increases the added value of the product. In addition, the production scale of the first phase of the project is 100,000 tons/year of iron phosphate and 300,000 tons/year of hydrochloric acid. Some land for the second phase has been reserved, retaining the probability of future production and having certain scale advantages. The main raw material required for the project, ferrous sulfate, comes from the by-product of the company’s titanium dioxide production. Monoammonium phosphate has established strategic partnerships with upstream raw material suppliers and can be transported to the factory by ship, with stable supply and low cost.
Hu Qimu, deputy secretary-general of the 50-member China Digital and Reality Integration Forum, said in an interview with Securities Daily: “On the one hand, Gimpo Titanium’s fundraising projects have extended from the past titanium dioxide industry chain to the new Energy battery materials industry chain, which makes the current good development momentum of the power battery market bring new profit growth space for the company; on the other hand, it can improve resource utilization and promote the continuous transformation and upgrading of the main business of titanium dioxide.”
In 2022, Gimpo Titanium Industry will achieve a total titanium powder production volume of 156,600 tons, a total sales volume of 151,800 tons, and a total sales volume of 2.428 billion yuan.
Gimpo Titanium stated that one of the raw materials for the project, ferrous sulfate, is a by-product of the titanium dioxide production process. The company has a comprehensive production capacity of 160,000 tons/year of titanium sulfate sulfate equipment, which will be used for the project. Provide high quality, low cost ferrous sulfate. After the project is completed, it can fully consume ferrous sulfate and other by-products, make full use of the abundant coal, power resources and raw and auxiliary materials in the project location, reduce the raw material cost of ferric phosphate, and help the company establish new performance growth points and enhance competitiveness and sustainability. Sustainable development capabilities.
Demand for main products is strong
Gimpo Titanium stated in the announcement that with the vigorous development of the new energy automobile industry and energy storage industry, the demand for lithium batteries has increased rapidly, thus promoting This reflects the increasing demand for upstream lithium-ion battery cathode materials. At the same time, with the decline of subsidy policies and the cost reduction process in the new energy vehicle market, as well as breakthroughs in power battery technology and the optimization and improvement of phosphate cathode materials, the advantages of lithium iron phosphate batteries are becoming more and more prominent, such as low cost, High safety and long cycle life have promoted the rapid growth of the market size of lithium iron phosphate cathode materials.
Based on the predictions of GGII and Minsheng Securities, by 2025, the domestic installed capacity of power batteries will reach 677GWh, and the global installed capacity of power batteries will reach 1,363GWh. ; Based on predictions from GGII and Tianfeng Securities, the global installed capacity of lithium iron phosphate energy storage batteries is expected to reach 464GWh by 2025. Demand for lithium iron phosphate batteries is growing rapidly.
“A 1GWh lithium iron phosphate battery requires approximately 2,500 tons of lithium iron phosphate cathode materials. In the context of a highly prosperous market for power batteries and energy storage batteries, due to its simple process, high raw material utilization, and good repeatability, The cathode material has high activity and mature production technology, and the lithium iron phosphate cathode material preparation process has become a mainstream process. The strong demand for lithium iron phosphate will drive the rapid growth of iron phosphate demand.” Gimpo Titanium said.
Hu Qimu said: “With the development of the new energy vehicle industry, the market demand for lithium iron phosphate batteries has been growing exponentially, and prices are also rising. At present, this demand is sustainable. Therefore, it is expected that In the future, traditional titanium dioxide companies will strengthen the layout of the new energy battery track, gradually transform into new energy battery raw material suppliers, and create new performance growth points.”
Gimpo Titanium said that the completion of the project will further improve the company’s industrial chain layout, improve the company’s comprehensive competitiveness and risk resistance capabilities, and expand from single titanium dioxide to titanium dioxide, iron phosphate, hydrochloric acid, Ammonium sulfate, vermicelli, etc.
