In view of the continuous improvement in the prosperity of the new energy vehicle industry and strong downstream demand, the sales of the lithium battery material business of Shanshan have increased significantly. Its unique cost-control measures and efficient supply systems have greatly improved the company’s profits.

In the first three quarters of this year, Shanshan's lithium battery material business achieved operating income of CNY 7.23 billion ($1.13 billion), a year-on-year increase of 57.91%; net profit attributable to shareholders of listed companies has reached CNY 844 million, a y-o-y increase of 464.97%. The lithium battery material business achieved a net profit excluding non-recurring gains and losses of CNY 355m in Q3, of which the anode material business contributed about half, Kallanish learns.

Shanshan currently has anode capacity of 120,000 tonnes and graphitisation capacity of 42,000 t. It is building an anode integration base to expand its graphitisation capacity. It has started the construction of the second phase of the anode material integration project with an annual output of 100,000 t in Baotou, Inner Mongolia. And it plans to invest about CNY 8 billion to build a lithium-ion battery anode material integrated base project with capacity of 0.2m t in Meishan, Sichuan.

Shanshan is the first Chinese enterprise engaged in the R&D and production of artificial graphite anode materials for lithium-ion batteries. It has independent core intellectual property rights in this area. It has also taken active measures to ensure the long-term and stable supply of raw materials for the anode business and graphitisation processing services. Shanshan also guarantees the supply of graphitisation processing services by participating in graphitisation processing enterprises, and reduces the cost of graphitisation through internal expansions, as well as innovative techniques and processes.

Shanshan is the only domestic leader in lithium battery material with focus on cathode material, anode material and electrolytes.

In the first three quarters of this year, Shanshan’s cathode material business created a net profit attributable to shareholders of listed companies of CNY 224m - mainly because of its continuous strengthening in supply chain management, handling of raw material price increases, and improvements in product profitability.

The electrolyte business has achieved a net profit attributable to shareholders from listed companies of CNY 232m due to lithium hexafluorophosphate price increases and partial self-production of lithium hexafluorophosphate.  

The company is still expanding through collaborations and investments to increase its production efficiency and global competitiveness.