Jiangxi Shenghua to build 500,000tpa ferrous oxalate project

Mianyang Fulin Precision Machining Co., Ltd. (Fulin P.M.) and Contemporary Amperex Technology Co., Limited (CATL) plan to jointly inject capital into Jiangxi Shenghua New Materials Co., Ltd. Fulin Precision will convert RMB500 million (USD72.1 million) of receivables into equity, while CATL will invest RMB747 million (USD108 million) in cash. Following the transaction, Jiangxi Shenghua will remain a majority-owned subsidiary of Fulin P.M.

Meanwhile, Jiangxi Shenghua plans to set up a joint venture with Guizhou Dalong Huicheng New Materials Co., Ltd. The JV will have registered capital of RMB 300 million (USD 43.3 million), with Jiangxi Shenghua contributing RMB 270 million (USD 38.9 million) for a 90% stake. The JV plans to invest RMB1.5 billion (USD216 million) to build a ferrous oxalate project with annual production capacity of 500,000 tonnes, scheduled to be completed and start operations by the end of September 2026.

The project will support Fulin P.M.'s lithium iron phosphate (LFP) business by securing upstream raw material supply and improving cost efficiency as LFP capacity expands.