Gasgoo Munich- Gasgoo has learned that on March 26, Ningxia Hengtron Nanotech Co., Ltd. held a groundbreaking ceremony for the first phase of its 130,000-ton lithium manganese iron phosphate (LMFP) cathode material base at the Yinchuan Economic and Technological Development Zone.
Image Source: Hengtron Nanotech
The project carries a total investment of 4.8 billion yuan. Signed on December 26, 2025, the groundbreaking came just three months later—a rapid timeline that underscores the efficiency of the project's execution. Split into two phases, the initial phase will establish a production line with an annual capacity of 30,000 tons of LMFP cathode materials for power batteries. Operations are slated to begin by December 2026. Upon full completion, the facility will stand as the Northwest's largest LMFP production base, filling a critical gap in Ningxia's industrial landscape.
LMFP serves as an upgrade to lithium iron phosphate (LFP), offering 15% to 20% higher energy density—a crucial trajectory for the new energy battery sector. Hengtron Nanotech has deep roots in this field, ranking first globally in LMFP shipments for three consecutive years from 2023 through 2025. Leveraging a proprietary "solid-liquid two-phase" process, the company holds core patents across China, the U.S., Europe, Japan, and South Korea, with its products already integrated into the supply chains of leading battery manufacturers.
The project's establishment is underpinned by Yinchuan's rich solar power resources, proximity to phosphorus and lithium mines, and efficient government services. By utilizing green electricity, the facility will produce materials with a carbon footprint 40% lower than the industry average while significantly cutting logistics costs. Furthermore, the Northwest base is set to boost supply response speeds for the northern and western markets by 50%.
Once Phase I reaches full capacity, annual tax revenue is projected to exceed 40 million yuan. This contribution will help the Yinchuan Economic and Technological Development Zone complete its new energy industrial chain, driving the sector toward high-end, green, and intelligent upgrades. Using the Yinchuan base as a pivot, Hengtron Nanotech aims to refine its national production matrix under a strategy of being "rooted in Ningxia, radiating across the Northwest, and serving the nation." Meanwhile, the development zone pledged to maintain robust service support to ensure the facility becomes operational and effective as soon as possible.
