-Special interview with Jiangsu Yangtze River International Chemical Industrial Park
China's government has confirmed officially to foster and develop seven industries like new energy vehicles, new energy and new materials as the strategic emerging industries since 2010. The development of emerging industry, such as electrical vehicles, power lithium ion battery (LIB) and its materials, has attached many attentions. LIB industry is just in a critical period of development, when the industry policies are put forward with caution, the safety of power LIB receives more attention, the energy storage assumes application potentialities, technological path takes incessant new breakthrough, differentiation are realized in materials business, high-end itches to have a go after the impulse stage with high investment intention and white-hot capital speculation.
China's LIB industry chain develops steadily and rationally, and the LIB enterprises with the advantage of high-tech stand out conspicuously. This port city, Zhangjiagang, is accumulating a bath of leading manufacturers like Galaxy Resources Limited, Morita Chemical (Zhangjiagang) Company Limited, Zhangjiagang Guotai-Hurong New Chemical Materials Co., Ltd., Zhangjiagang Huasheng Chemicals Co., Ltd., Jiangsu Guotai Libode New Materials Co., Ltd., Jiangsu Tenpower Co., Ltd. and Mudan Auto Co., Ltd., which engages in the production of the raw materials of LIB materials, the key material of LIB, power LIB, energy storage battery, electrical vehicle and electrical bicycle. All these have set up a good base to foster new energy LIB industrial chain and build a leading Sci-tech Industrial Park for LIB.
Q: Please introduce backbone enterprises of LIB industrial chain get together in the Park at present? What is the Park's overall plan of LIB industry chain?
A: A relative completed LIB industrial chain, involving LIB materials, LIB, energy storage battery and application products in the Park, is being established. Now in the Park, enterprises producing the raw materials of electrolyte include the Galaxy Resource Limited, Morita Chemical (Zhangjiagang) Company Limited, Zhangjiagang Yayuan High-Tech Materials Co., Ltd., Suzhou Fluolyte Co., Ltd., Zhangjiagang Huasheng Chemicals Co., Ltd. and Zhangjiagang Hicomer Chemicals Co., Ltd.; companies making electrolyte include Zhangjiagang Guotai-Hurong New Chemical Materials Co., Ltd., Zhangjiagang Hutian New Energy Technology Co., Ltd., Zhangjiagang Xinyi Chemical Plant and Super-Power Electronic Chemicals Co., Ltd.; companies producing anode materials include Jiangsu Guotai Libode New Materials Co., Ltd., Suzhou Long Yeah Lithium Power Vehicle Co., Ltd. and Zhangjiagang Lithium Sources New Energy Technology Co., Ltd.; battery producers include Jiangsu Tenpower Co., Ltd., Jiangsu Litian New Energy Technology Co., Ltd., DLG Power Battery (Zhangjiagang) Co., Ltd and Suzhou Long Yeah Lithium Power Vehicle Co., Ltd.; companies engage in the production of power management system include Jiangsu Boqiang New Energy Technology Co., Ltd., Jiangsu Soul New Energy Technology Co., Ltd. etc.; Jiangsu Jinfan Power Technology Co., Ltd. majors in the manufacture of charging and discharge instruments for LIB; pure electric vehicles and bicycles producers include Mudan Auto Co., Ltd., Zhangjiagang Jiangnan Automobile Manufacturing Co., Ltd., Jiangsu Youyi Automobile Co., Ltd. and Suzhou Eagle Electric Vehicle Manufacturing Co., Ltd.
A good development base of LIB industrial chain has been built in the Yangtze River International Chemical Industrial Park. The Park makes great efforts to set up "the LIB new materials sci-tech industrial park" on the base, which is one of the important strategic aims for the Park during the 12th five-year program. The park will insist on the notion of sustainable recycle economy, and import supporting manufacturers with the LIB backbone enterprises as driving force, which set up the circulation development mode by good coordination between all steps of LIB industry chain. The total investment is going to strive for RMB3.2 billion in the Park till 2013 and annual sales value is expected to reach RMB8 billion. The Park's production capacity, scientific research level and market share of LIB is to move ahead in China, to have the ability to enter into international market, to create the park as new energy industrial demonstrative region with new energy industrial base, new energy development base and modern service high land on the along river area of Jiansu province.
Q: What the advantaged superiority does the park have in creating LIB industry chain cluster?
A: The government of Zhangjiagang has built up a good basis for the park development by its port logistic advantage with reaching major river and sea, fine basis of supporting facility, enough and professional human resources, beautiful living surrounding matching facilities, good government service principle with favor, enrich and comfort the merchant. The tax free zone provides unparalleled supporting conditions for fostering LIB industrial base through its location superiority, cluster of industry chain, the advantage of local raw material supply and unique preferential policies.
Q: Galaxy Resources Limited completed and put on stream its lithium carbonate plant with a capacity of 170 000 t/a at the Park on March 7. What rule does this project play on pushing forward the LIB industry development in the park?
A: Australia's Galaxy Resources Limited, an Australian listed company, owns the worldwide second biggest reserves of spodumene ore. For strategic consideration, this company set up a subsidiary company Galaxy Resources (Australia) Ltd in Australia in 2008. China Creat Group acquired shares in Galaxy Resources Limited as a strategic investor in October 2009, and became the first biggest shareholder holding 19.9% shares of stock. While, Galaxy also added strategic investors like Geely Automobile Holdings Ltd, Fengli Group Co., Ltd to get ready for IPO, and was going to choose the right moment for listing in Hong Kong. The company is expected to raise more than $0.5 billion funds in IPO, which were to invest totally in its LIB industrial base in Zhangjiagang.
The plant that went on stream at the Yangtze River International Chemical Industrial Park in March has a total investment of US$139.66 million and a registered capital of $50 million, and can annually produce 170 000 tons of lithium carbonate - a basic materials of LIB. The plant occupies 5.3 hectares of land. It is China's biggest production base of electronic grade lithium carbonate with expecting sales of RMB1.2 billion annualized. Galaxy Resources Limited also plans license its overseas patents and brands to the plant at the Park, as technology investment valued at US$50 million. This project acts as a shot of adrenaline on extending the LIB industrial chain to the downstream in Park.
Q: The quality level of battery depends on, to a certain extent, the development of LIB key materials, such as anode and negative electrode materials, separ