Hunan Yuneng Announces RMB 24 Billion Investment in Integrated Mining and Chemical New Energy Battery Material Project

Hunan Yuneng New Energy Battery Material Co.,Ltd. (ASX: 301358) has announced plans to invest in the construction of the Guizhou Yuneng (Weng'an) Integrated Mining and Chemical New Energy Battery Material Circular Industry Project in Weng'an County, Qiannan Buyi and Miao Autonomous Prefecture, Guizhou Province.

The project aims to establish a comprehensive layout for lithium iron phosphate (LFP) and its upstream industrial chain. This encompasses the production of LFP and its precursor, lithium iron phosphate, along with securing key raw material sources.

These sources include phosphorus (involving phosphate rock mining, beneficiation, phosphorus chemical processing, and the production of sulfuric acid required for phosphoric acid), iron (from sources like pyrite), as well as lithium carbonate processing and lithium battery recycling.

The total investment for the project is approximately RMB 24 billion, with the final amount subject to actual expenditures. Funding will be sourced from the company's own capital and self-raised funds.

The company intends to invest between RMB 5 and 8 billion within the first 18 months following the official commencement of construction. Subsequent investment phases will be adjusted based on future market demand and other factors.

The overall construction period for the project is estimated to be five years.

Beyond expanding capacity for LFP and its precursor, the investment strategically addresses the supply of phosphorus, iron, and lithium sources.

For phosphorus, the company will leverage local resource advantages to build a complete industrial chain from mining and beneficiation to chemical processing. Sulfuric acid supply for phosphoric acid production will be secured through methods like pyrite-based and phosphogypsum-based acid production, with the latter also enabling solid waste treatment and resource regeneration.

For the iron source, the company will utilize materials such as pyrite to ensure a stable supply. Regarding lithium, the project includes capacity for lithium carbonate processing and lithium battery recycling.

This integrated layout is designed to enhance the security of the company's upstream material supply, mitigate risks associated with raw material price volatility, establish a unique and difficult-to-replicate resource and cost advantage, and solidify its position within the industry.