(Yicai Global) Oct. 15 -- Yongtai Technology will adjust an earlier investment plan to further boost production capacity of lithium hexafluorophosphate, the main component of power battery electrolyte, amid soaring demand for power battery materials.

Yongtai will now invest CNY792.7 million (USD123 million) in a new 67,000-ton-per-year production line for lithium hexafluorophosphate solution in Shaowu, Fujian province, as well as a new 67,000-ton-per-year line for another key electrolyte additive, lithium bis (fluorosulfonyl) imide solution, it said in a statement late yesterday.

Yongtai did not reveal a timetable for the projects, only saying that the Linhai, Zhejiang province-based company expected average revenue of CNY5.4 billion and additional net profit of CNY670 million a year.

In a plan released in June, Yongtai had said it would invest CNY794.2 million to build a production line with an annual output of 20,000 tons of solid lithium hexafluorophosphate, as well as production plants for hydrofluoric acid and other electrolyte additive products.

China produced 21,320 tons of lithium hexafluorophosphate nationwide in the first half, nearly the same amount as in 2019 and up 134 percent from the same period last year, per statistics from Shanghai Xinluo Network Technology’s Iccsino website.

Yongtai has annual output of 2,000 tons of lithium hexafluorophosphate and it produces a variety of lithium battery electrolyte additives. In August, it signed a long-term supply contract with lithium battery giant Contemporary Amperex Technology.

Since the beginning of the year, demand for lithium hexafluorophosphate products has soared and product prices have continued to rise, which has been the main reason for Yongtai’s significantly better financial performance.

The firm posted nine-month net profit of CNY375 million, an increase of 65 percent from a year ago, according to the earnings report it released yesterday, and in the third quarter net profit surged more than 16 times to CNY280 million.

Shares of Yongtai [SHE:002326] closed up 1.8 percent at CNY57.4 (USD8.90) today.

Editor: Tom Litting