Nantong Tianci terminates lithium battery and fluorinated new materials project

Tianci Materials' subsidiary, Nantong Tianci, officially terminated its planned production project of 243,000tpy of lithium battery and fluorinated new materials, which was designed to produce electrolytes, LiFSI, and fluorinated compounds. The project had an initial planned total investment of RMB2,654 million (USD390.94 million). As of June 30, 2026, the construction-in-progress balance stood at RMB9,361,300 (USD1,378,948).

According to the company, from the second half of 2023 onward, the electrolyte sector experienced a wave of concentrated capacity expansions by both industry leaders and new entrants. This, coupled with weaker-than-expected downstream demand, led to a significant supply-demand imbalance in the electrolyte market. Consequently, electrolyte prices continued to decline, compressing profitability across the sector. In 2024, after completing perimeter wall construction and road paving at the site, the company decided to suspend the project.

Tianci Materials already operates a 200,000tpy electrolyte production facility in Liyang, Jiangsu Province. This location offers close proximity to key power battery client clusters, significantly reducing transportation distances and lowering logistics and delivery costs. In addition, the company's existing electrolyte production bases retain room for technical upgrades and expansion, with substantially lower capital expenditures compared to building entirely new production lines. At this stage, establishing new electrolyte capacity in Nantong would yield comparatively weaker overall investment returns and lacks a clear competitive advantage.