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Dongfeng Motor signed an annual production of 50,000 tons of LFP cathode materials and power battery recycling project in Hubei Province

Source: company announcement


January 6, 2024

Dongfeng Hongtai Company, a subsidiary of Dongfeng Motor Corporation, has entered into a collaboration with the government of Xiangcheng District in Xiangyang City, Hubei Province, and Guangdong Jinsheng New Energy Co., Ltd. This partnership will launch a significant project aimed at producing 50,000 tons of lithium iron phosphate cathode materials annually, as well as focusing on the recycling of power batteries.

The project, dedicated to cathode materials production, is set to unfold in two stages. The planned investment is substantial, amounting to 2 billion yuan, which is approximately 278 million US dollars. Once fully operational, the project is anticipated to generate yearly revenues of around 2.93 billion yuan (about 407 million US dollars) and contribute annually about 160 million yuan in taxes, equivalent to 22.2 million US dollars.

Guangdong Jinsheng New Energy Co., Ltd., established in December 2010, specializes in producing essential lithium battery materials, including battery-grade cobalt sulfate, nickel sulfate, manganese sulfate, and lithium carbonate. The company has made a notable entry into the supply chain of leading global battery manufacturers.

Dongfeng Motor Corporation Ltd., headquartered in Wuhan, Hubei, is a prominent state-owned automobile manufacturer in China. Founded in 1969, it ranks as the third-largest among China's "Big Four" state-owned car manufacturers, which includes SAIC Motor, FAW Group, Dongfeng Motor Corporation, and Changan Automobile. In 2021, their respective car sales were 5.37 million, 3.50 million, 3.28 million, and 2.30 million.

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