Foshan Plastics Technology Partners with Zijin Mining to Enter Solid-State Battery Core Materials Sector

On the evening of November 13, Foshan Plastics Technology announced that the company plans to jointly invest 100 million yuan with two subsidiaries of Zijin Mining Group Co., Ltd. and the related party Guangdong Guangxin Innovation Research Institute Co., Ltd. to establish a project company in the Shanghang Industrial Zone of Longyan City, Fujian Province, to build a 100 tons/year battery-grade lithium sulfide pilot platform. The total investment for the project is 113.39 million yuan (including value-added tax).

Lithium sulfide is one of the main raw materials for sulfide solid-state electrolytes and is regarded as a core material in the key technological pathway for next-generation power batteries. According to the announcement, the project mainly focuses on the research and development, production, and operation of high-purity battery-grade lithium sulfide products, with a planned construction period of 10 months. The registered capital of the project company is 100 million yuan, of which Zijin Mining's wholly-owned subsidiary, Fujian Zijin Lithium Material Technology Co., Ltd., contributes 60 million yuan for a 60% stake, Guangxin Research Institute contributes 25 million yuan for a 25% stake, Xiamen Zijin New Energy Materials Technology Co., Ltd. contributes 10.06 million yuan through patent technology and proprietary technology evaluation for a 10% stake, and Fosu Technology contributes 5 million yuan in cash for a 5% stake.

The partners in this collaboration have strong backgrounds. Zijin Lithium Yuan and Xiamen Zijin are both subsidiaries of Zijin Mining, with the actual controller being the Finance Bureau of Shanghang County, Longyan City, Fujian Province. They possess technical and resource advantages in the field of new energy materials. Guangxin Research Institute is a wholly-owned subsidiary of Guangxin Group, the controlling shareholder of Foshan Plastics Group, and focuses on advanced manufacturing and new energy materials. Xiong Yong, a director of Foshan Plastics Group, also serves as a director and general manager of the institute, constituting a related party transaction.

Foshan Plastics Technology stated that joint investments with leading industries and related parties are beneficial for leveraging each party's advantages and diversifying the risks of product research and development as well as project investment. After the establishment of the project company, it will become an associate company and will not be included in the consolidated financial statements, and it is expected that there will be no significant impact on the financial situation in 2025.

The announcement clearly indicates three major risks: first, the project construction may be affected by factors such as resource input and approval progress; second, it faces changes in macroeconomic conditions, industry policies, technological routes, intensified market competition, and...Solid-state batteryThe industrialization process is uncertain; thirdly, there is a risk of not achieving the expected returns. The company emphasizes that it will promptly disclose progress and reminds investors to pay attention to the risks.

According to reports, Fospower Technology focuses on the research and development of polymer new materials and has been continuously extending its layout into the field of new energy materials in recent years.