Inner Mongolia Hongyuan plans graphite plant

China's Inner Mongolia Hongyuan Graphene New Material is planning to build a production plant for graphite negative material used in lithium-ion batteries.

The firm will invest 80mn yuan ($11.5mn) to develop the project, which comprises a 10,000 t/yr production line for graphite negative material for lithium-ion batteries and a 5,000 t/yr plant for graphite carbonised material.

The project is located in the Chahar Right Rear Banner administrative region of Inner Mongolia in north China. Site construction is expected to begin in April next year.

Chinese graphite producers have been raising their production in the last few years as they look to meet growing demand from the lithium-ion battery industry. The rapid growth in electric vehicle (EV) production has encouraged graphite negative material manufacturers to boost output. China is on target to produce 1mn EVs this year.

Inner Mongolia Hongfeng New Material is also building in the same area a 10,000 t/yr plant for graphite negative material for lithium-ion batteries, which is scheduled to be commissioned by the end of this year.

Inner Mongolia Mengji New Carbon Material is building three plants with a combined capacity of 15,000 t/yr to produce graphite negative material for lithium-ion batteries. The new plants are scheduled to be completed at the end of this year and will raise the company's total capacity to 20,000 t/yr.

Another 10,000 t/yr project operated by Inner Mongolia Xinyuan Graphene New Technology was commissioned in February.

China's production of graphite negative material for lithium-ion batteries last year rose by 23.7pc from a year earlier to 146,000t, in response to 27pc growth in the country's lithium-ion battery production to 80.5GWh for the same period.