Gasgoo Munich- Jiangsu Hengtron Nanotech Co., Ltd. has closed a B-round financing worth hundreds of millions of yuan. The round saw participation from the Yinchuan Yucheng Phoenix Sci-Tech Innovation Fund, with capital earmarked primarily for expanding capacity for lithium manganese iron phosphate (LMFP) cathode materials. The investment aims to solidify the company's market position in this specialized sector.
The funding targets a 130,000-ton annual production line for LMFP cathode materials in Yinchuan, Ningxia, with a 30,000-ton first phase as the immediate priority. Leveraging the western region's energy and resource advantages, the Yinchuan facility is designed to boost supply speed for downstream customers in northern and western China — a move that marks the initial formation of Hengtron's nationwide production network. Meanwhile, back in its hometown of Yancheng, the company is simultaneously moving forward with plans to add 20,000 tons of capacity, building on existing facilities that are already running at full utilization. This expansion is designed to further strengthen its production scale.
Image Source: Hengtron
Lithium manganese iron phosphate (LMFP) is emerging as a mainstream technology for next-generation power batteries, offering significant opportunities for large-scale commercialization, according to a representative from the Yinchuan Yucheng Phoenix Sci-Tech Innovation Fund. Hengtron holds distinct advantages in patents, mass production capabilities, and market share, the representative noted, adding that the fund will support the Yinchuan base's development while driving the local new energy materials cluster toward high-end, green upgrades.
Closing this B round signals the capital market's endorsement of Hengtron's strategy of pairing technology with capacity. As production ramps up at both the Yinchuan and Yancheng bases, the company is poised to scale its mass production capabilities and complete its nationwide footprint. This will ensure a more stable supply of LMFP materials for the global power battery chain, while accelerating the broader commercialization of the domestic LMFP sector.
About "Seeds":
Gasgoo's "Seeds" column is designed to connect startups, ecosystem partners, investors, and local governments, empowering the entire automotive supply chain. Since its inception, the column has sought to identify standout companies, technologies, and business models driving the intelligent transformation of the industry. According to Gasgoo, nearly every startup featured in "Seeds" has gone on to successfully connect with strategic resources across the ecosystem.
