A significant development has emerged from the lithium battery supply chain as the first batch of products rolled off the production line at the Phase B section of a major new energy lithium battery cathode material project on September 10. Located in the Deyang-Aba Eco-Industrial Park in Mianzhu City, Sichuan Province, this facility is operated by Sichuan Fulin New Materials Co., Ltd.

The annual output of 350,000 tonnes of new high-density lithium iron phosphate (LFP) material is sufficient to power batteries for approximately 1.4 million pure electric sedans. Based on current market pricing, this production capacity translates to an estimated output value of around 18 billion yuan.

This ambitious project is a joint venture between Fulin Precision Co., Ltd. (SZSE: 300432) and Contemporary Amperex Technology Co., Limited (SZSE: 300750), also known as CATL. The development is structured across two phases, labeled A and B, which together will establish a comprehensive annual capacity of 350,000 tonnes for this advanced cathode material.

Phase A of the project has already been fully constructed and is operating at its designed capacity. The newly launched Phase B is currently in a production ramp-up period and is expected to achieve full operational capacity within the month.

The Deyang-Aba park serves as a crucial upstream materials hub for China's lithium battery industry. Its robust industrial ecosystem and complete supply chain support have been instrumental in facilitating the rapid production ramp-up. On average, 26 trucks arrive daily at the Fulin New Materials facility transporting raw materials, while approximately 400 tonnes of finished LFP are shipped out to customers across the nation each day.