2.805 billion invested in lithium batteries! Shida Shenghua launches three major new material projects simultaneously

On the evening of August 3, Shida Shenghua New Materials Group Co., Ltd. (603026) issued three consecutive announcements regarding project investments. Three wholly-owned subsidiaries will invest in lithium battery core material projects respectively. The total investment for the three major projects amounts to 2.805 billion yuan, all to be located in the Kenli plant area in Dongying, Shandong, constructing a "lithium salt—additive—electrolyte" vertically integrated production system for lithium battery materials.

The announcements show that the investment entities, production capacity scales, investment amounts, and construction cycles for the three projects are clearly defined:

230,000 tons/year Liquid Lithium Salt Project

Implemented by the wholly-owned subsidiary Dongying Shida Shenghua New Energy Co., Ltd., with a total project investment of 1.797 billion yuan and a construction cycle of 24 months. This project is the largest engineering undertaking in this investment. Relying on the company's existing core advantages in carbonate solvents, it will produce liquid lithium salt products. Once the capacity is put into production, it can not only support internal electrolyte production but also be sold externally, opening up the upstream lithium salt supply link.

200,000 tons/year Electrolyte Project

The implementing entity is Dongying Shenghua Lida Chemical Technology Co., Ltd., with a total investment of 722 million yuan and a construction cycle of only 12 months. Electrolyte is a core main material for lithium batteries. This project can directly consume self-produced liquid lithium salts, lithium battery additives, and solvents, significantly reducing raw material procurement costs and enhancing the market competitiveness of electrolyte products.

12,000 tons/year Lithium Battery Additive (Lithium Fluoride) Project

Invested and constructed by Shenghua New Energy Technology (Dongying) Co., Ltd., with a total investment of 286 million yuan and a construction cycle of 12 months. Lithium battery additives are used to improve core performances such as electrolyte cycling and high/low-temperature resistance. Supporting the production of self-produced electrolytes, it fills the gap in the key auxiliary material segment of the industrial chain.

The company stated that this concentrated layout of three major lithium battery material projects is based on a long-term optimistic view of the development space in the power battery and energy storage lithium battery markets, while deepening strategic cooperation with top-tier battery customers. All projects are selected at existing plant sites, allowing for the sharing of park utilities, warehousing, and supporting facilities. This fully leverages the synergistic advantages of raw material integration, effectively hedges against the risk of upstream raw material price fluctuations, and strengthens the company's comprehensive barriers in the field of lithium battery materials.

According to calculations, after all three projects reach full production, the estimated annual increase in total revenue is approximately 13.491 billion yuan, and the estimated annual increase in net profit is approximately 1.706 billion yuan, significantly thickening the performance scale of the company's new energy business. The source of funds is entirely corporate self-owned and self-raised funds. The relevant proposals for the projects have been approved by the company's board of directors, and subsequently need to be submitted to the shareholders' general meeting for approval before formal construction can begin.

As a global leading enterprise in carbonate solvents, Shida Shenghua has previously completed the national layout of solvent capacity. This heavy investment extends downstream into lithium salts, electrolytes, and additives, marking the company's official transformation from a single solvent supplier to a full-chain integrated service provider for lithium battery materials. Market analysis believes that after the completion of the integrated capacity, the company's product costs and supply stability will form significant differentiated advantages, fully benefiting from the long-term demand growth dividend of the lithium battery industry.