On January 1, 2023, Jiangsu Kaijin New Energy Technology held a ceremony to mark start of construction for the second phase of its integrated anode production base in Jiangsu. The base is located in New Huanghe District of Yancheng, a prefecture-level city in China’s Jiangsu Province. It is set to comprise 200,000 tons per year of production capacity for anode material used in Li-ion batteries.
The total investment in the base comes to RMB 6 billion, with each of the two phases entailing RMB 3 billion. The base is set to accommodate an R&D center, a centralized warehousing facility, and processing facilities that enable the vertically integrated manufacturing of anode materials. The first phase, which began construction on February 28, 2022, will have processing lines pertaining to grinding, surface modification, and low-temperature carbonation. It will also have a centralized warehousing facility.
The second phase, which began construction on the first day of this year, will have processing lines pertaining to superfine grinding, high-temperature carbonization, and high-temperature graphitization. Kaijin said the anode materials manufactured at the base will contribute to the creation of Li-ion batteries that have a higher storage capacity, a longer cycling life, a greater durability against high temperatures, and other kinds of performance advantages. Once the base is fully built and in operation, it is expected to become a major pillar of the local industry for Li-ion NEV power batteries. Yancheng is currently developing a battery industry cluster that is worth tens of billions in yuan.
Jiangsu Kaijin New Energy Technology is a wholly-owned subsidiary of Guangdong Kaijin New Energy Technology that was established in March 2012. Kaijin as a whole focuses on the development, manufacturing, and sales of anode materials used in Li-ion batteries. Besides Jiangsu, Kaijin has local operations in many other regions of China, including Inner Mongolia, Qinghai, and Sichuan. The anode materials offered by the company are mostly based on artificial graphite. However, a few of its products are based on composite graphite. Kaijin’s customers consist of domestic and foreign battery manufacturers. Its notable Chinese clients include CATL, Lishen, Gotion Hi-Tech, and Farasis Energy. Its notable clients in other countries include LEJ from Japan and Kokam from South Korea.
Earlier, the China Securities Regulatory Commission notified that it had terminated the review process for Kaijin’s IPO application on October 14, 2022. Kaijin originally planned to launch IPO in the Shanghai Stock Exchange and get listed on the Main Board of the exchange. It was to issue no more than 41 million shares that would account for less than 10% of its total shares and be separated from the publicly traded shares of its existing shareholders. The target of the IPO was to raise RMB 1.02 billion that would then be used to add 50,000 tons per year of production capacity for high-performance anode materials, built an R&D center, and supplement working capital. Dongxing Securities was to be the sponsor or lead underwriter.
This article is a translation of a Chinese article posted by TrendForce. It contains information that is either sourced from other news outlets or accessible in the public domain. Some Chinese names are transcribed into English using Hanyu Pinyin.
Image: Huanghe New District
