China’s Crystal Clear to Invest Up to USD46.4 Million to Triple NMP Capacity
Tang Shihua
DATE:  Aug 06 2021
/ SOURCE:  Yicai
China’s Crystal Clear to Invest Up to USD46.4 Million to Triple NMP Capacity China’s Crystal Clear to Invest Up to USD46.4 Million to Triple NMP Capacity

(Yicai Global) Aug. 6 -- Crystal Clear Electronic Material will invest as much as CNY300 million (USD46.4 million) to meet growing demand from lithium-ion battery makers for n-Methylpyrrolidone by tripling its capacity to make the key raw material. 

The new facility will be based in the northwestern Chinese city of Weinan in Shaanxi province and construction is expected to be finished in a year, the Suzhou-based company said in a statement late yesterday.

It will be able to make 50,000 tons of electronic-grade NMP a year and there will also be production lines for NMP's main raw material, γ-Butyroladone. Crystal Clear's current annual NMP production capacity is 25,000 tons.

Crystal Clear is the sole NMP supplier for Samsung's lithium-ion battery venture in China and it also supplies top lithium-ion battery makers including Contemporary Amperex Technology and Mitsubishi Chemical.

Prices of NMP, a vital component for lithium-ion batteries, semiconductor chips and flat-panel displays, have surged recently, partly due to insufficient supply. The average price is now from CNY38,000 (USD5,875) a ton to CNY39,000 (USD6,030) per ton, almost triple the cost of last year.

Shares of Crystal Clear [SHE:300655] finished 3.8 percent lower today at CNY55.58 (USD8.59). They have rallied about 280 percent in the last six months, touching a record CNY66.71 on Aug. 2.

Editor: Tom Litting

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Keywords:   Capacity Expansion,Electronic Grade Chemicals,γ-Butyroladone,N-Methylpyrrolidone,Power Battery,Crystal Clear Electronic Material