Dual-track layout accelerates! Wanhua Chemical establishes two new companies in succession

Recently, Wanhua Chemical has been active frequently, successively establishing two joint ventures to increase its presence in the two major fields of battery materials and high-end polycarbonate (PC) new materials, continuously improving the layout of the new material industry chain, and implementing its annual investment plan.

I. Deepening the Layout of the Full Battery Material Industry Chain in Yichang, Hubei

1. New Joint Venture Company Established to Support Ferrous Phosphate Production

On May 18, Luyin Luhua (Hubei) New Material Technology Co., Ltd. was officially established with a registered capital of 100 million yuan and a legal representative named Lv Baofeng. In terms of equity structure, Luyin Investment holds 51%, and Wanhua (Hubei) New Energy Material Technology Co., Ltd., a subsidiary of Wanhua Chemical, holds 49%. The company's business scope covers new material technology R&D, experimental development, additive manufacturing, and other related businesses.

This joint venture will invest 450 million yuan to build a high-performance metal powder material project. Located in the Yidu Chemical Industrial Park in Yichang, Hubei, it plans to build production lines with an annual output of 200,000 tons of atomized powder and 100,000 tons of ultra-pure mineral powder. The products are mainly high-purity iron powder and high-compression atomized powder dedicated to lithium iron phosphate (LFP) battery cathode materials, directly supporting the raw material needs of Wanhua's ferrous phosphate project within the park.

Luyin Investment possesses strong strength, having been listed in 1996, with businesses covering salt industry, new materials, new energy, and equity investment. Its subsidiary is a leading powder metallurgy iron-based powder production enterprise in Asia with mature processes and a stable supply chain. Powder materials for lithium iron phosphate have achieved mass supply, and product indicators fully meet the requirements for ferrous phosphate production.

2. Multi-party Collaboration to Build a Complete Lithium Battery Material Industry Chain

Tracing the upstream layout, Wanhua (Hubei) New Energy Material Technology Co., Ltd. was formerly Hubei Huaxing New Energy Co., Ltd., a joint venture established on March 6 this year by Wanhua Chemical (Yantai) Battery Industry Co., Ltd. in conjunction with Xingfa Group, with a registered capital of 600 million yuan.

In March this year, the company's annual output of 240,000 tons of iron-process ferrous phosphate and supporting facilities project completed the environmental impact assessment (EIA) publicity. It also settled in the Yidu Chemical Industrial Park and is currently under construction, with production expected to start in 2027. In addition, the 600,000-ton ferrous phosphate and supporting industry project with a total investment of 15 billion yuan by Wanhua Chemical and Xingfa Group started construction in 2025, aiming to create a complete industry chain for lithium iron phosphate cathode materials.

As a leading domestic phosphorus chemical enterprise, Xingfa Group holds 156 million tons of high-quality phosphate ore resources and has an annual organic silicon capacity of 600,000 tons. Phosphate ore is a core raw material for lithium iron phosphate. Thus, Wanhua Chemical has formed a tripartite synergy pattern with Xingfa Group and Luyin Investment. Relying on their respective resources, technology, and operational advantages, they have built an integrated industry chain of phosphate ore — high-purity iron powder — ferrous phosphate — lithium iron phosphate cathode materials, fully exerting effort in the new energy battery material sector.

3. Clear Capacity Planning with Continuous Release of Lithium Iron Phosphate Capacity

According to Li Limin, Senior Vice President, CFO, and Secretary of the Board of Wanhua Chemical, revealed on May 22, the company will see a concentrated release of lithium iron phosphate capacity in 2026, with a total of 820,000 tons of newly commissioned capacity for the year.

Among them, Wanhua Haiyang Phase I 100,000 tons/year lithium iron phosphate project was put into operation in March this year; Haiyang Phase II and III, each with 200,000 tons/year, and Laizhou Phase I with 320,000 tons/year, are all planned to be completed and put into operation by the end of 2026.

II. Partnering with Pingmei Shenma to Boost High-end PC New Material Business

On May 21, Huashen New Materials (Henan) Co., Ltd. was registered and established with a registered capital of 360 million yuan and a legal representative named Li Peng. Wanhua Chemical holds 55%, and Henan Pingmei Shenma Polycarbonate Materials Co., Ltd. holds 45%, marking a new stage of cooperation between the two parties in the field of PC new materials.

1. Solid Capacity Foundation of Partner with Smooth Project Approval Progress

Henan Pingmei Shenma Polycarbonate Materials is controlled by China Pingmei Shenma Holding Group with a registered capital of 1.4 billion yuan, mainly producing high-end chemical new materials such as polycarbonate and bisphenol A. Its project located in the Ye County Industrial Agglomeration Area in Henan plans an annual output of 400,000 tons of PC and supporting 370,000 tons of bisphenol A. The Phase I 100,000 tons PC and 130,000 tons bisphenol A units have been successfully put into operation.

The Phase II project planning has been adjusted; the 240,000 tons/year bisphenol A project is temporarily suspended, while the 200,000 tons/year PC and supporting 150,000 tons/year phosgene project were officially approved on March 26 this year. The project adopts Wanhua Chemical's proprietary phosgene interfacial polycondensation PC production process. Upon completion, Pingmei Shenma's total PC capacity will reach 300,000 tons/year.

2. Wanhua's PC Capacity Leads with Products Winning International Automaker Certification

Currently, Wanhua Chemical has an existing PC capacity of 600,000 tons/year and a bisphenol A capacity of 576,000 tons/year. The phosgene interfacial polycondensation process is mature, and its PC capacity ranks first in China. In addition, the Fujian 600,000 tons/year PC project initiated its first EIA in March this year, which will further consolidate its industry capacity advantage upon future production.

There is also frequent good news on the technology and market fronts. On May 8, Wanhua Chemical's self-developed modified PC material Clarnate®A1225BK passed the MS certification of Hyundai Motor Group (Kia), becoming the first Chinese enterprise to enter the automaker's modified PC supply system for automotive lights. Previously, its PC resin product Clarnate®HL6157 also obtained Hyundai Kia certification, as domestic high-end PC materials officially entered the supply chain of top international automakers.

3. Deep Cooperative Roots with Continuous Deepening of Industry Chain Synergy

Wanhua Chemical and China Pingmei Shenma Group have a long history of cooperation. Since signing a contract in 2020, they jointly established Huashen New Materials (Ningbo) Co., Ltd. to build an 180,000 tons/year hexamethylenediamine project, which went into production in June 2024. Hexamethylenediamine is a key raw material for products such as Nylon 66 and HDI. This project has solidified the raw material guarantee for both parties' nylon and isocyanate industry chains.

The establishment of the new company in Henan this time is another deep collaboration following the hexamethylenediamine project and a substantive implementation of previous high-level strategic cooperation exchanges.

III. Accelerated Strategic Implementation with Full-year Investment Focusing on New Material Sector

According to the plan, Wanhua Chemical's external equity investment scale in 2026 is expected to reach 2.22 billion yuan, with funds mainly invested in battery materials, new material business expansion, and international layout. The successive establishment of these two joint ventures is a concrete implementation of the company's annual strategic investment. Relying on diversified cooperation models, Wanhua Chemical continues to fill gaps in the industry chain, amplify technology and capacity advantages, and steadily expand in the two core sectors of new energy materials and high-end chemical new materials.