Yongtai Technology: It is expected that 6,000 tons of solid hexafluorocarbon will be put into production by the end of this year

On November 16, Yongtai Technology said in an institutional survey that Yongtai Hi-Tech, as one of the company's important production bases for lithium battery materials, is mainly responsible for the production of lithium salt products, including lithium hexafluorophosphate and lithium bis(fluorosulfonyl)imide. The company has currently put into production 2,000 tons of solid lithium hexafluorophosphate and 500 tons of solid lithium bis(fluorosulfonyl)imide, and is expected to put into production 6,000 tons of solid hexafluorophosphate by the end of this year.

As for why it gave up the priority purchase right for the equity transfer of its holding subsidiary Yongtai Hi-Tech, Yongtai Technology explained that the company gave up the priority right for this equity transfer based on the overall consideration of the company's long-term development strategy and business plan. The company hopes to use its subsidiary Yongtai Hi-Tech as the basis for cooperation and carry out more comprehensive and in-depth cooperation with downstream leading enterprises. Therefore, the company gave up the priority purchase right and introduced industry-leading strategic investors for its subsidiary.

Faced with the risk of a possible decline in lithium battery materials in the future, Yongtai Technology pointed out that, first of all, the company's expansion plan for lithium battery material projects is a prudent decision made after comprehensively considering multiple factors such as downstream customer market demand and industry development growth rate, and verified by multiple data. The current tight supply and demand situation of products will not cause the company to make decisions blindly. Secondly, the company has currently put into production some lithium battery material projects, has relatively mature production processes, has accumulated rich production experience, and has established a relatively sound quality management system. Therefore, the company's lithium battery material expansion project construction cycle is relatively fast, and at the same time it can fully reduce production costs and improve product competitiveness. Finally, since product prices are affected by supply and demand, there is a risk of price decline in the future. Therefore, based on the principle of prudence, the company fully considered the impact of future market price changes when conducting a feasibility analysis of the project, and calculated the project at a more conservative forecast price. At the same time, the company signed long-term orders with some major downstream customers to combat the risk of product declines.

Regarding the future planning of lithium battery materials, Yongtai Technology believes that the company's current positioning and development goal is to build a company with a relatively complete electrolyte material product matrix. It will vertically build a vertically integrated platform for upstream, midstream and downstream materials, improve the upstream supply chain system, and form a strategic partnership with the downstream.

It is reported that the company's early difluoride production capacity was relatively small mainly due to repeated research on difluoride production technology such as cost reduction and by-product recycling. At present, the technology has reached the goal we set, so we have increased our efforts to expand production.

Compared with solid lithium salts, the production process of liquid lithium salts mainly omits some steps such as crystallization and drying. It is sold in liquid form after adding solvents. The process is different, so the investment cost and production cost are relatively reduced, but the transportation cost is relatively increased. Both have their own advantages.

Yongtai Technology believes that the company will make sufficient strategic inventory preparations for some raw materials in advance to effectively control the risk of rising raw material prices on the company's product costs. At the same time, the company will establish strategic cooperation with upstream suppliers in the industrial chain, upgrade or transform product processes, and increase efforts to carry out continuous production transformation and by-product recycling without changing the reaction route to reduce the company's product costs.