Huasheng Lithium Project with an Annual Output of 3000 tons of Lithium Difluorosulfonate Imide (Phase I) is expected to have an annual pilot production

On March 24, Jiangsu Huasheng Lithium Battery Materials Co., Ltd. announced the summary of its 2022 annual report.

The summary shows that in the 2022 consolidated statements of the company, the net profit attributable to shareholders of the listed company was 260793607.58 yuan, of which the parent company's net profit was 245766065.16 yuan. As of December 31, 2022, the cumulative undistributed profit in the consolidated statements was 732615246.77 yuan, while the cumulative undistributed profit of the parent company was 628743215.42 yuan.

Currently, the company's products mainly include two series of electronic chemicals and special organosilicon, highly covering the domestic market, while exporting to Japan, South Korea, the United States, Europe, Southeast Asia and other countries and regions. In the field of electronic chemicals, the company is one of the leading suppliers of vinyl carbonate (VC) and fluoroethylene carbonate (FEC) in the market. Its products are widely used in new energy vehicles, electric two-wheeled vehicles, electric tools, UPS power supplies, mobile base station power supplies, photovoltaic power stations, 3C products, and other fields. In the field of special organic silicon, the company is one of the few manufacturers with the technology of "non phosgene method for producing isocyanate silane". With leading technical advantages, excellent product quality, and excellent after-sales service, the company has won a good reputation among customers at home and abroad.

The company is actively expanding the production capacity of electrolyte additive products. Currently, it has three production bases in Zhangjiagang Phase I and Phase II, as well as Taixing Huasheng, a wholly-owned subsidiary. The total annual production capacity of VC and FEC products has reached 5000 tons. At the same time, the company will expand the production capacity of VC and FEC products through the construction of fund-raising investment projects. Upon completion of the project, the annual output of VC products can be increased by 6000 tons and FEC products by 3000 tons, continuing to maintain the leading position in the production scale of lithium battery electrolyte additives, while providing a strong guarantee for the company's market competition and performance growth in the coming years.

Fluorinated ethylene carbonate (FEC) is a core additive specifically developed for the electrolyte of high magnification power type lithium ion batteries. It is the main guarantee for achieving high safety and high magnification of lithium batteries, and can enhance the stability of electrode materials. The electrolyte added with FEC can form an effective SEI film on the surface of the battery electrode, increasing the lithium ion migration rate of the battery, and significantly improving the charging and discharging performance of the battery at high magnification. At the same time, due to the thin SEI film formed by FEC in the field of silicon carbon negative electrodes and its toughness and self-healing properties, FEC can prevent the structural breakage of silicon carbon negative electrodes due to lithium intercalation volume expansion during charging and discharging, greatly improving the service life of silicon carbon negative electrodes, and promoting the wide application of silicon carbon negative electrodes. Currently, lithium batteries with FEC are mainly suitable for hybrid and pure electric vehicles, and are expected to be used for energy storage in solar, wind, and other fields in the future, with a broad market prospect.

During the reporting period, the company's main business continued to be deeply engaged in the field of lithium battery electrolyte additives, vinyl carbonate, and fluorocarbonate. It continued to increase investment in research and development of relevant manufacturing technologies, improve production efficiency, reduce production costs, improve product quality, and consolidate the dominant position of its main products in the market. In the field of new additives, the company has continued to develop technology for LiFSI and completed a number of industrial mass production technology reserves, such as the direct fluorination technology of dichloromethane, the lithification reaction of difluorosulfonymide, the purification of LIFSI products, and the final product sizing process, which can effectively solve key technical nodes such as dehydration, salt formation technology, and product discoloration control in products. For this product, the company cooperates with Sanmei Co., Ltd., with its subsidiary Shengmei Lithium Power as the main body, and the newly built "3000 tons/year lithium difluorosulfonate project", a phase I 500 tons project, is expected to undergo trial production in the middle of 2023. After the project is put into production, it will be widely promoted in power lithium battery electrolytes through the company's existing sales network, making up for the potential shortage of domestic production capacity of the product, while generating synergies with the company's existing traditional negative electrode additives, laying a solid foundation for the company's new lithium battery electrolyte additive business.