Chinese companies Fulin Precision and SD Lomon to construct joint facilities for manufacturing lithium battery materials.
In a significant move aimed at meeting the growing demand for fast-charging lithium batteries, Fulin Precision and SD Lomon have announced plans to collaborate on building two joint venture lithium battery material plants in China's Sichuan province. The partnership, announced in early July 2025, marks a strategic step towards ensuring a steady, large-scale supply of crucial raw materials in the region.
The first joint venture plant will focus on producing high-density lithium iron phosphate (LFP), a material in short supply and better suited for manufacturing fast-charging batteries. The second plant will concentrate on producing lithium dihydrogen phosphate and ferrous oxalate. Each plant will have an annual production capacity of 100,000 tons for their respective products.
Fulin Precision, a key raw materials supplier for CATL, one of China’s leading battery makers, recently signed an agreement with CATL to prioritise the production of lithium iron phosphate cathode materials from this year to 2029. This partnership with SD Lomon is expected to further strengthen Fulin's position in the lithium battery materials market.
For the lithium iron phosphate JV, Fulin Precision or its subsidiary will hold a 51% stake, with SD Lomon owning the remaining 49%. In contrast, for the other joint venture producing lithium dihydrogen phosphate and ferrous oxalate, SD Lomon will hold 51%, and Fulin the remaining 49%.
The financial details and construction timelines for these projects have not been disclosed. However, the partnership is expected to contribute significantly to the region's lithium battery production capabilities, addressing the increasing demand for fast-charging lithium batteries.
In related news, Shenghua New Material, the parent company of one of the partners, reported sales figures in its 2025 trading report. Last year, Shenghua New Material sold 126,200 tons of high-density lithium iron phosphate, worth CNY4.8 billion (USD670 million). Meanwhile, the stock price of SD Lomon (SHE: 002312) rose 1.2 percent to end at CNY11.43 today, while Fulin Precision's stock (SHE: 300432) closed down 0.2 percent at CNY13.01 (USD1.82) each today.
[1] Fulin Precision and SD Lomon Partner to Build Lithium Battery Material Plants in Sichuan, China - Reuters, July 2025 [3] Fulin Precision and CATL Sign Agreement to Prioritise Lithium Iron Phosphate Cathode Material Production - CATL Press Release, June 2025
The strategic partnership between Fulin Precision and SD Lomon will extend beyond the production of lithium battery materials, as they aim to invest in technology to enhance their industry and improve the efficiency of their financial transactions in the lithium battery business. The collaboration is poised to not only strengthen their position in the market but also bolster the technology sector by adopting advanced techniques for the production of lithium iron phosphate, lithium dihydrogen phosphate, and ferrous oxalate.
