China's Fulin Precision Ends Investment Cooperation with Deyang Chuanfa Longmang on 175,000-Ton Lithium Iron Phosphate Project

en.Wedoany.com Reported - Fulin Precision announced on August 24 that it plans to terminate the investment cooperation with Deyang Chuanfa Longmang New Materials Co., Ltd. on the "175,000-ton lithium iron phosphate project" in the Deyang-Aba Ecological Economy Industrial Park in Mianzhu City, and the two parties will sign a termination agreement.

According to the announcement, Fulin Precision disclosed the relevant investment plan in October 2025, under which its controlling subsidiary Jiangxi Shenghua New Materials Co., Ltd. planned to invest in and build a project with an annual output of 350,000 tons of new high-compaction-density lithium iron phosphate in the Deyang-Aba Ecological Economy Industrial Park. The project is to be constructed in two phases: Phase I involves building a new production line with an annual output of 175,000 tons of new high-compaction-density lithium iron phosphate, and Phase II involves building another new production line with an annual output of 175,000 tons of new high-compaction-density lithium iron phosphate, with a total estimated investment of 4 billion yuan. Based on this plan, Jiangxi Shenghua signed an "Investment Cooperation Agreement" with Deyang Chuanfa Longmang, a wholly-owned subsidiary of Sichuan Development Longmang Co., Ltd., to jointly establish a joint venture company, which would serve as the main entity to build a new 175,000-ton lithium iron phosphate project.

Regarding the reasons for terminating the investment cooperation, Fulin Precision stated that after the original agreement was signed, the two parties conducted multiple rounds of communication and deliberation on cooperation details and project implementation plans. Given that the joint venture company under the original agreement had not yet been established, and the cooperation matters could hardly meet the practical needs for rapid project advancement in terms of implementation pathways, resource allocation, and decision-making efficiency, the two parties reached a consensus through friendly negotiation that the cooperation no longer had the conditions to proceed.

According to the announcement, to ensure the implementation of Fulin Precision's lithium iron phosphate capacity layout, Jiangxi Shenghua will undertake and accelerate all subsequent construction work for the project.

It is worth noting that Fulin Precision stated that as of now, the company's 350,000-ton new high-compaction-density lithium iron phosphate project is already in the commissioning process, with production line construction and debugging progressing in an orderly manner as planned, and capacity release is in line with expectations. The termination of this investment cooperation will not have a material adverse impact on the company's existing production and operations or financial condition.