In the fiercely changing 2025 era of power battery technology, a chemical giant is quietly completing a critical strategic capacity switch with its keen market sense and strong execution power. Recently, Wanhua Chemical (Sichuan) Battery Material Technology Co., Ltd.'s "Annual Production of 30000 Tons of Lithium Iron Phosphate Reconstruction Project" has entered the stage of environmental protection acceptance and public announcement. This marks that after the energy-saving report of the project is approved in May 2025, the renovation project aimed at shifting the original ternary material production line to lithium iron phosphate will officially land in Meishan, Sichuan, becoming the latest footnote for Wanhua Chemical's bet on the "second growth curve" of battery materials. Liao Zengtai, Chairman of Wanhua Chemical, said, "Battery materials are the core of our goal of 'creating another Wanhua', and this production line transformation is a key measure for us to quickly respond to market changes

Adapt to the market and decisively switch tracks

The core of the project is to utilize existing factories and facilities to transform the ternary positive electrode synthesis process from the original "10000 ton annual lithium battery ternary material project" into a 30000 ton annual lithium iron phosphate synthesis process. This transformation deeply reflects the changing market trend: with the withdrawal of subsidy policies for new energy vehicles and the comprehensive consideration of cost and safety, lithium iron phosphate batteries have risen from a market share of about 44% in 2020 to mainstream status. Wanhua Chemical promptly followed up, not starting from scratch, but through efficient renovation, revitalizing existing assets, and quickly entering the booming lithium iron phosphate track. Previously, the company had already laid out and put into operation multiple related projects in Sichuan. This renovation will further strengthen its production capacity matrix in this field. The project leader pointed out, "By renovating the existing production line, we can achieve mass production of lithium iron phosphate within 12 months, which saves nearly half of the time compared to building a new production line

Driven by technology, competing in the high-end battlefield

However, the current lithium iron phosphate industry is undergoing structural differentiation. Traditional production capacity is facing overcapacity and fierce price wars, while the fourth generation high-voltage solid density lithium iron phosphate with high energy density and fast charging performance is in short supply. Wanhua Chemical's layout is clearly aimed at high-end. The company has successfully achieved mass production of the fourth generation product and completed the finalization of the fifth generation product. Its independently developed new iron lithium sintering technology can produce high-performance materials with a compaction density of ≥ 2.7g/cm ³. In the planned production capacity of Haiyang, Shandong, this technology will be applied on a large scale. This means that Wanhua Chemical is not simply joining the production capacity competition, but relying on its research and development strength to directly participate in the high-end technology competition that determines the future pattern. The technical director added, "Our fourth generation product has been certified by multiple leading battery companies, and the gross profit margin of high-performance products is significantly better than the industry average

Strategic Conclusion, Reshaping the Industrial Landscape

This production line renovation is a crucial step proposed by Liao Zengtai, Chairman of Wanhua Chemical, to turn battery materials into a "billion dollar new business" and achieve the strategic goal of "rebuilding Wanhua". By shifting the ternary material production line of the Sichuan base to lithium iron phosphate, the company can more closely connect with regional market demand and reduce costs with the advantage of an integrated industrial chain. At present, with the accelerated reshuffle of the industry and the sharp differentiation of corporate profitability, Wanhua Chemical has entered the market with strong capital, technological reserves, and scale capabilities. Its aim is not only to overcome the cycle, but also to promote the upgrading of China's lithium iron phosphate industry towards high performance and high added value, accelerate the clearance of outdated production capacity, and reshape the market competition pattern. Industry analysts commented, "Wanhua's entry into the market will change the industry ecology. The cost control ability and technological iteration speed brought by its chemical background may eliminate a group of small and medium-sized manufacturers and promote the increase of industry concentration.Editor/Yang Beihua