On June 28, Miracle Automation made an announcement regarding a new investment project. According to details released about the investment project, Miracle Automation plans to invest RMB 5 billion to build an annual production project of 30,000 tons of ternary precursor materials and 12 thousand tons of battery-level lithium carbonate.
Miracle Automation stated in an announcement that a meeting of the company’s seventh board of directors was held on June 28, 2021, and the board passed a proposal to sign the investment contract with a management committee in Longnan Economic and Technological Development Zone. The proposal agreed that Miracle Automation and its subsidiary are on track to purchase 26 hectares land in the Longnan Economic and Technological Development Zone and to establish a production project in the next five years that uses lithium ion batteries as a main raw material to reach a production capacity of 30,000 t/a of ternary precursor materials and 12,000 t/a of battery-grade lithium carbonate.
Project to begin at end of 2021 and complete in 2024
The company which leads the project is Miracle Automation’s subsidiary,
Jiangxi Miracle Golden Tiger Cobalt Co., Ltd. (Golden
Tiger Cobalt). The total investment for the project is approximately RMB 5 billion,
with a fixed capital of RMB 2.5 billion. The project is divided into two phases
of establishment. The first phrase of establishment is projected to start
during the fourth quarter of 2021. About 16.5 hectares of land is planned for
use during the first phrase. The second phrase of establishment will begin in
the fourth quarter of 2022, and it will complete and operate in the fourth
quarter of 2024. 10 hectares of land will be used for the second phrase.
Project comes amid a sharp increase in demand for battery materials
According to Miracle Automation, the raw materials used in the current
project are based on old expired lithium batteries. The purpose of the project
is to recycle chemical materials such as nickel, cobalt, manganese, and lithium,
and to produce ternary precursor materials. With the high-speed development of
the alternative fuel vehicle industry in the recent years, the market volume of
alternative fuel batteries is increasing sharply, and the lithium battery
industry is also developing rapidly. It is expected that the demand for lithium
battery materials such as precursor materials and lithium carbonate, as well as
recycling lithium batteries will also increase greatly.
On June 23, Miracle Automation released its performance report for the first half of 2021. It is expected that the net profit for the first half year of 2021 ranges from RMB 75 million and RMB 85 million, which is an increase of 562.02%-650.29% compared to the same period last year. The success is attributed to the development of the alternative fuel vehicle industry in China, an increasing demand for battery materials, as well as an increase in the price of metal such as cobalt and lithium. Additionally, Golden Tiger Cobalt and Ganzhou Tianqi lithium Industrial Co., Ltd continue to optimize their product structures by expanding production capacity and reducing material costs, so the sales volume and company’s profits are also increasing.
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