Tianci Materials Terminates Nantong Lithium Battery Project, Originally Planned to Invest Over 2.6 Billion Yuan!

On July 4, Guangzhou Tinci Materials Technology Co., Ltd. (“Tinci Materials”) announced that it will terminate the 243,000-ton-per-year lithium battery and fluorine-containing new materials project undertaken by its subsidiary, Tinci Materials (Nantong) Co., Ltd.

The announcement shows that the project was originally approved in August 2021 as the “Annual Production of 350,000 Tons of Lithium Battery and Fluorine-Containing New Materials Project (Phase I),” with a total investment of approximately RMB 1.766 billion. In June 2022, Tinci Materials revised the construction scope, merged Phases I and II, removed some products, and changed the project name to the “Annual Production of 243,000 Tons of Lithium Battery and Fluorine-Containing New Materials Project,” with the total investment raised to RMB 2.654 billion. The planned products include electrolyte, LiFSI (lithium bis(fluorosulfonyl)imide), and fluorine-containing materials.

As of June 30, 2026, only preliminary works such as land leveling, construction of the plant perimeter wall, and road paving had been completed for the project. The balance of construction in progress was RMB 9.3613 million, and main construction had not yet commenced.

Tianci Materials stated that the termination of the project was mainly based on the following three considerations:

1. The company already has an electrolyte production capacity of 200,000 tons in Liyang, Jiangsu, located in close proximity to core power battery customer clusters, with clear advantages in logistics and delivery costs. In addition, the existing production site has room for technical upgrades and expansion, offering better overall investment efficiency than building a new production line in Nantong.

II. To leverage synergies between upstream and downstream raw materials and enable internal recycling of by-products, the Company has decided to concentrate its core material production capacity at its existing raw material industrial cluster base, as constructing a standalone new facility would make it difficult to achieve the same level of efficiency.

Third, due to the rapid iteration of the fluorine-containing materials industry, the profitability prospects of the originally planned products are unclear and the return on investment is highly uncertain. Therefore, the construction of this segment will also be terminated.

Tinci Materials stated that this termination is a “strategic adjustment made based on market demand, regional supporting conditions, and industrial chain synergy,” aimed at improving overall asset operating efficiency and in line with the company’s medium- and long-term integrated development strategy. Since the project has not entered the substantive construction stage, it will not have a material adverse impact on the company’s current operating performance, nor will it alter the company’s overall layout in the lithium battery materials industry or its medium- and long-term capacity planning.

Tinci Materials also disclosed that, based on the existing supporting resources of Nantong Tinci and its strategic development plan, the company has initiated research and evaluation on new product proposals for the Nantong plant, and will screen and plan projects suitable for local location advantages and industrial conditions for implementation.