DFD New Materials recently announced that its subsidiary Henan Nonferrous Metals Industry signed a purchase agreement with Enchem in which Enchem Co., Ltd. intends to purchase no less than RMB 1 billion worth of LiPF6 products from Henan Nonferrous over the next three years.
DFD currently has an LiPF6 capacity of 15 KMT/year, with total shipments of 13 KMT expected in 2021. DFD plans to add another 40 KMT/year of capacity next year, bringing total capacity to 55 KMT/year, with annual output and sales of more than 30 KMT. Output and sales from 2023 onwards will gradually be increased according to market conditions.
DFD’s LiPF6 is a crystalline solid that has high purity, consistent quality, and a wide range of applications compared to liquids, and it is sealed with inert gas during encapsulation for safe transportation over long distances.
In terms of cost advantage, DFD has a mature upstream and downstream industrial layout for the three elements involved in the production of LiPF6 products: fluorine, lithium, and phosphorus, and it is able to master the supply of raw materials, which can effectively avoid impacts on product costs caused by fluctuations in raw materials. After years of research on equipment, the company has formed the advantage of large-scale equipment and intensive production of devices. The third advantage it has is the scale advantage. At present, the company has a scientific and reasonable distribution of customers, stable supply relationships, and obvious advantage in the industry in terms of supply volume. At the same time, the company is also increasing its research and development efforts, integrating relevant resources, improving the element recovery rate and extending the supply chain to further reduce costs and increase efficiency.
Source: Fluorochemicals Industry News