Wanhua Chemical Makes Another Investment in Laizhou

(Source: Xingyuan Chemical Industry Park Research Institute)

Recently, Wanhua Chemical Group (Laizhou) New Energy Co., Ltd. was established with a registered capital of 600 million RMB. The company is wholly owned by Wanhua Chemical (Yantai) Battery Industry Co., Ltd., a subsidiary of Wanhua Chemical. Its business scope includes power generation, transmission, distribution, power supply, wind power technology services, solar power technology services, battery leasing, and photovoltaic equipment leasing. This is the second company Wanhua Chemical has recently established.

Laizhou is an important lithium iron phosphate (LiFePO4) industry base for Wanhua Chemical.

In December 2025, Wanhua Chemical and the Laizhou Municipal Government successfully signed the “Wanhua Laizhou Green Power Industry Park” investment agreement. Wanhua Chemical will invest in building an annual 650,000-ton lithium iron phosphate project in Laizhou. Once operational, the project will provide key material support for the development of new energy industries such as power batteries and energy storage batteries in Shandong Province.

In the same month, the Laizhou Municipal Government website published the “Wanhua Chemical (Yantai) Battery Industry Co., Ltd. Wanhua Chemical Laizhou 650,000-ton Lithium Iron Phosphate Project Social Stability Risk Consultation Notice,” soliciting opinions and suggestions on the legality, rationality, feasibility, controllability, and potential social stability risks of the project.

In February 2026, the environmental impact assessment document for Wanhua Chemical Laizhou’s 650,000-ton lithium iron phosphate project was accepted. The project mainly involves the construction of a 650,000-ton/year lithium iron phosphate production facility and auxiliary facilities such as circulating water, desalination water, and air separation and compression units.

The establishment of this new company marks the latest step in Wanhua Chemical’s layout in Laizhou’s new energy sector. Battery materials are identified as Wanhua Chemical’s “second growth curve.” “This industry has very high potential ceilings and broad development prospects,” said Wanhua Chemical Chairman Liao Zengtai. He also publicly stated that the battery materials business is a strategic layout for long-term development and a true second entrepreneurial venture for Wanhua Chemical.

In terms of cathode materials, Wanhua Chemical is accelerating the construction of projects related to phosphoric acid, lithium iron phosphate, and other battery materials, aiming to build a complete supply chain from phosphate ore to lithium carbonate to cathode materials. The capacity for PVDF, the core material for cathode binder in lithium iron phosphate batteries, is also under planning. For anode materials, Wanhua Chemical is integrating the full process of graphite anodes, silicon-carbon anodes, and resin-based hard carbon anodes, continuously developing differentiated new technologies for cathode materials, and accelerating technological upgrades.

According to the plan, Wanhua Chemical expects to reach a production capacity of 300,000 tons of lithium iron phosphate by 2026, enough to meet the production needs of approximately 300 GWh of batteries. The capacity scale is expected to rank among the top three globally.