Taineng Chemical Plans RMB 5.46 Billion Iron Phosphate Project and RMB 2.6 Billion Add-on Investment

Taineng Chemical unveiled several large-scale investment plans on August 11. The phosphate iron precursor project will be built in two phases, with an annual capacity of 400,000 tonnes in the first phase and 200,000 tonnes in the second, for a combined annual capacity of 600,000 tonnes. The total investment for the two major projects amounts to approximately RMB 11 billion, funded by the company's own resources and self-raised funds. Iron phosphate is the precursor for lithium iron phosphate cathode material and a key basic raw material in the new-energy power battery and energy storage battery supply chain. With the development of the new-energy industry, lithium iron phosphate has become the main global technology route for lithium batteries, and the iron phosphate market has grown accordingly, with the industry's overall capacity utilization rate rising above 80%. The price of iron phosphate has climbed to approximately RMB 15,500 per tonne. Taineng Chemical currently has an annual production capacity of 100,000 tonnes of iron phosphate, and in its 2026 interim report it disclosed that its iron phosphate has obtained certification from leading downstream customers and is now in batch supply. Taineng Chemical's revenue is derived from the sale of titanium dioxide, ferrous sulfate, phosphate ore, yellow phosphorus, and iron phosphate, as well as logistics and transportation services, with sales of titanium dioxide, phosphate ore, yellow phosphorus, and iron phosphate being the main income sources. In the first half of 2026, the company achieved revenue of RMB 4.557 billion, up 20.89% year on year, and net profit attributable to shareholders of RMB 420 million, up 61.93% year on year. The performance growth was mainly driven by the recovery of market prices in the titanium dioxide, yellow phosphorus, and iron phosphate sectors. On August 11, Taineng Chemical closed at RMB 4.48 per share, with a latest market capitalization of approximately RMB 17.1 billion.