600 million plus! Tosun Technology and UACJ of Japan jointly build a new joint venture plant for aluminum materials for lithium-ion batteries

According to reports, recently, Japanese aluminum materials company UACJ announced that it will build a new joint venture plant in my country for aluminum materials for lithium-ion batteries. Aluminum materials are expected to be used in pure electric vehicles (EVs) with rising demand. Including other products, the total investment is approximately 7 billion yen. The new plant will start mass production in 2020 and will be sold to battery manufacturers in my country and Japan. Ruyuan Dongguang Youaixijie Fine Foil Co., Ltd., 49% invested by UACJ and 51% invested by Guangdong Dongyang Technology, will build a factory in Guangdong Province. The total usable area of u200bu200bthe factory is about 20,000 square meters. The equipment investment for battery materials is about 5 billion yen. In addition to the aluminum material that wraps and protects the battery, the positive electrode material needed for charging will be processed. The annual output is about 10,000 tons. UACJ currently processes aluminum materials for batteries at three factories in Gunma, Tochigi and Malaysia. This time it will establish a fourth processing plant. Ruyuan Dongyangguang will also increase its production of heat exchangers for cooling automobile engines and aluminum materials for electronic products. The investment amount is approximately 2 billion yen. The annual output of the two existing plants is approximately 90,000 tons, which will increase by 30% to 120,000 tons in the future. According to UACJ and others, it is estimated that by 2025, the global market for battery-related aluminum materials will expand to 3.5 times that of 2017, reaching about 210,000 tons. The expansion of power lithium battery output and the improvement of product performance have attracted aluminum foil processing companies to actively deploy aluminum foil projects for lithium-ion batteries. On September 4, Tosun Technology announced that the company intends to strengthen cooperation with Japan’s largest aluminum foil processing company UACJ Co., Ltd., and the joint venture company Ruyuan Tosunshine Uaixijie Fine Foil Co., Ltd. (hereinafter referred to as 'Ruyuan 'Foil') with an investment of no more than 600 million yuan for the construction of the expansion project of brazing foil for automobile heat exchangers and the new construction of aluminum foil for lithium-ion batteries. Products include brazing foil and aluminum foil for lithium-ion batteries. After the completion of the project, the total output of brazing foil of Dongyang Branch will reach 70,000 tons/year, and the output of battery aluminum foil is expected to reach about 10,000 tons/year. The first phase of construction is expected to be completed and put into operation in 2020. Tosunshine’s main business is mainly divided into three major sections: electronic new materials, alloy materials and chemical products. It mainly processes various types of foil products. It is the largest domestically formed foil and hydrophilic foil processor. Its core product is electrodes for aluminum electrolytic capacitors. Foil, while merging and developing fluorine chemicals. Driven by the continued rise in the new energy vehicle market, Tosunshine is actively deploying aluminum foil for lithium-ion batteries. As the output of power lithium batteries continues to expand and the urgent demand for battery energy density increases, the market demand for aluminum foil for power lithium batteries is showing a rapid upward trend, and at the same time higher requirements are placed on the product performance of aluminum foil. Data shows that the amount of aluminum foil for 1Gwh lithium-ion batteries is about 600-800 tons. It is foreseeable that under the background of explosive rise in demand for new energy powered vehicles, the domestic aluminum foil market for lithium-ion batteries will also rise sharply, supplying power for the increase in product shipments and performance of aluminum foil companies. At the same time, as one of the key substrates of lithium-ion batteries, aluminum foil is mainly used as the current collector and outsourcing material of the cathode material. The product consumption is large but the performance requirements are high. The technical threshold of aluminum foil for power lithium batteries is relatively high. This means that there are fewer aluminum foil companies that can provide large-scale supply to power lithium battery companies, so that the gross profit margin of aluminum foil products is guaranteed, and the profitability of aluminum foil companies with a higher market share is considerable. At present, there are many domestic aluminum sheet, strip and foil processing companies, the overall scale is small, and the technological innovation capabilities and new product research and development capabilities are insufficient, resulting in low entry barriers for the industry and low industry concentration. Among them, the low-tech, low-value-added aluminum strip and aluminum foil wool products are relatively mature, with a high market share, and the high-tech, high-value-added double zero foil products, brazing foil products, and battery foil products are produced and sold. The amount is low. The layout of the aluminum foil project for lithium-ion batteries by Dongyang Branch is based on the current shortage of domestic high-end lithium-ion battery aluminum foil supply, and intends to seize the high-end aluminum foil market. The establishment of a joint venture with UACJ, the largest aluminum foil processing company in Japan, to build a battery aluminum foil project for lithium-ion batteries is also to take advantage of UACJ's technical advantages in the field of aluminum foil to further improve its market position of brazing foil products and increase the number of aluminum foils for lithium-ion batteries. , Improve and optimize the company's product structure. According to the data, Ruyuan Fine Foil was established in 2002, and Tosunshine Branch and UACJ hold 51% and 49% of the shares respectively. In 2017, Ruyuan Fine Foil achieved revenue of 3.092 billion yuan and net profit of 59.3243 million yuan; from January to June 2018, the company achieved revenue of 1.615 billion yuan and net profit of 38.123 million yuan. After the completion of the project, Tosun Technology will add a new lithium-ion battery aluminum foil business to add a new power engine to the company's performance increase. It is worth noting that, unlike traditional aluminum foil for food packaging, air conditioning, printing, etc., aluminum foil for lithium-ion batteries has higher performance requirements, especially for power lithium batteries. Therefore, the company faces certain entry barriers, and the aluminum foil industry has the special characteristics of large initial investment. When deploying lithium-ion battery aluminum foil, the company will face problems such as large capital flow, long account periods, and difficulty in repayment.