Recently, Wanhua Chemical, a giant in the chemical industry, has made another big move. The three projects have been announced and put into production, which has stirred up thousands of waves in the industry like a blockbuster bomb and attracted countless attention. What is the magic of these three projects? Let’s find out!
1. Wanhua Electronics’ disilane production line: a “potential stock” in the field of chips and new energy
The one-time successful trial production of the disilane production line independently developed by Wanhua Electronics is undoubtedly a highlight in the progress of this Wanhua Chemical project. This company, founded in 2018, has continuously expanded its business territory with monosilane and disilane as its core products. In its annual production line of 140 tons of silane products under construction, the designed production capacity of disilane is 50 tons/year. As a key material for advanced chip processes and high-end process processes, with the rapid development of semiconductor technology, the demand for high-process chips such as 14nm and 7nm has exploded. Not only that, in the field of new energy, ultra-pure disilane gas is also an important material for manufacturing amorphous silicon thin-film solar cells, and can also be used to produce silicon-based thin films and nanostructured materials. Compared with traditional silane, disilane has significant advantages such as high film density, smooth and continuous deposited film, good doping compatibility, low deposition temperature, high film formation rate and production efficiency. Globally, international giants such as Mitsui East Asia Chemicals and Showa Denko have already laid out their plans, and many domestic companies such as Anhui Yagsheng and Northern Special Gas have also been involved, which shows that its market potential is huge. Although the current design capacity of domestic companies is mostly less than 50 tons, the successful trial production of Wanhua Electronics has undoubtedly injected a shot of adrenaline into the industry, and future development is worth looking forward to.
2. Wanhua Chemical Lithium Iron Phosphate Project: Following market trends, opportunities and challenges coexist
At a time when the lithium battery industry is changing, the lithium iron phosphate project shines like a bright new star. Despite the pressure on the industry, lithium iron phosphate will soar to 80% of the installed market share in 2024, becoming a new favorite in the market. This is due to the decline in domestic car prices and the rise of plug-in hybrid models. It has also attracted the favor of many overseas car companies such as Renault and Volkswagen. Wanhua Chemical’s layout of a 100,000-ton lithium iron phosphate project at this time can be said to be in line with the trend and has a solid market background support. However, the market is like a battlefield, and the competition is extremely fierce. On December 24, the huge supply agreement signed by Longpan Technology Holdings’ subsidiary and South Korea’s LG New Energy showed the fierceness of market competition vividly. At the same time, the Ministry of Commerce’s adjustment of restrictions on the export of battery positive electrode material preparation technology has also brought new variables to the industry. For companies that have already laid out related projects overseas, this is undoubtedly a challenge that requires careful consideration. How will Wanhua Chemical stand out in this fierce competition? Let’s wait and see.
3. Wanhua Chemical’s citral ISPO unit technical transformation project: extension of the industrial chain, opening a new chapter of diversified applications
The citral ISPO unit technical transformation project can obtain 2,300 tons of MPDO products annually through technical transformation. As a member of the derivative polyol series, MPDO has a wide range of applications, covering membranes, soles, PU resins, adhesives and other fields. It can also be used as a pharmaceutical intermediate and solvent. It is an important product in the downstream of the citral industry chain. Looking back at the environmental impact assessment of Wanhua’s citral and its derivatives integrated project in 2021, its construction scale is large, including multiple devices such as isopentanol, isopentanal, and citral. Among them, in August 2024, the 48,000 tons/year citral unit was successfully put into trial operation and produced qualified products, marking that Wanhua Chemical has taken another solid step in the citral industry chain. This not only helps to enhance the added value of the company’s own industrial chain, but also provides related industries with a richer selection of raw materials and promotes the coordinated development of the entire industrial chain.
These three projects of Wanhua Chemical, whether in the fields of electronic materials, new energy batteries or fine chemicals, have demonstrated strong strength and forward-looking layout. They are like three keys that open the door to different futures and set off a new wave of development in the industry. I believe that in the near future, Wanhua Chemical will achieve more brilliant achievements in their respective fields with these projects. Let us witness it together!
Wanhua Chemical has announced three more projects and put them into production.
Among the projects put into production is the disilane production line independently developed by Yantai Wanhua Electronic Materials Co., Ltd. (hereinafter referred to as ” Wanhua Electronics “) and was successfully put into trial production at one time.
Wanhua Electronics was established in January 2018. Its core products include monosilane, disilane , etc., and based on this, it will expand related electronic special gas and bulk gas businesses. It is reported that the company will start the industrial construction of the disilane project in June 2023. Currently, a silane product production line with an annual output of 140 tons is under construction, and the designed disilane production capacity is 50 tons/year.
Disilane is a key material for advanced chip manufacturing processes and related high-end processes. With the change of new semiconductor technologies and processes, high-process chips such as 14nm and 7nm have an increasing demand for disilane. In addition, ultrapure disilane gas is also one of the important materials for manufacturing amorphous silicon thin film solar cells . It can also be used as a precursor in the CVD process to produce various silicon-based thin films and nanostructure materials .
Compared with currently widely used silanes, disilane products have higher film density, greatly improve the smoothness and continuity of deposited films, good doping compatibility and low deposition temperature, and greatly increase the film formation rate and production. Efficiency and other advantages.
The purity of disilane is the core indicator. Major global companies include Japan’s Mitsui Toa Chemicals , Showa Denko , South Korea’s SK Materials , the United States’ Voltaix Inc , France’s Air Liquide and China’s Taiwan Special Chemicals , etc. In recent years, Anhui Yagsheng , Northern Special Gas , Zhongning Silicon Industry , Wanhua Electronics , Walter Gas , Xingyang Technology , Xingtai Silicon Materials Technology , Hubei Xunsheng , etc. also have layouts or projects under construction. Jinhong Gas also recently stated that disilane is in the process of industrialization.
At present, the designed production capacity of domestic enterprises is mostly less than 50 tons. Disilane is a small and beautiful type. Please pay attention when investing.
There are also two public projects , namely (1) Wanhua Chemical (Haiyang) Battery Materials Technology Co., Ltd. Wanhua Chemical Green Electricity Industrial Park Phase I Project with an annual output of 100,000 tons of lithium iron phosphate; (2) Wanhua Chemical Group Co., Ltd. Citral ISPO unit technical renovation project .
Among them, the lithium iron phosphate project has been reported before. Although the lithium battery industry is now also under pressure, lithium iron phosphate has “suddenly emerged”, with its installed capacity market share soaring to 80% in 2024, beating Sanyuan. This is mainly due to the current domestic Driven by factors such as falling car prices and the sudden rise of plug-in hybrid models . Not only that, more and more overseas car companies such as Renault, Stellantis, General Motors, Hyundai, and Volkswagen have also begun to choose lithium iron phosphate batteries, and the prospects are promising.
On December 24, Longpan Technology announced that its holding subsidiaries Changzhou Lithium Source and Asia Pacific Lithium Source and South Korea’s LG New Energy (LGES) have revised the “Long-term Supply Agreement” signed by both parties in February this year. Sales volume will soar from 160,000 tons to 260,000 tons before 2028, with a market value of nearly RMB 10 billion, making it the largest transaction contract signed in the global lithium iron phosphate market this year .
Therefore, Wanhua’s project is also supported by market background, and of course the competition is huge.
However, it is worth mentioning that on January 2, 2025, the Department of Trade in Services of the Ministry of Commerce issued a notice for public comment on the adjustment of the “China’s Catalog of Export Prohibited and Restricted Technologies” , which included new battery cathode material preparation technologies in the restricted export section. Including lithium iron phosphate preparation technology , lithium iron manganese phosphate preparation technology, and phosphate cathode raw material preparation technology .
Of course, this refers to technology export, not product export. The focus may affect the transfer of technology through trade, investment or economic and technological cooperation . For companies such as Dangsheng Technology, Rongbai Technology, and Longpan Technology that have deployed phosphoric acid overseas, I wonder if companies involved in lithium iron and lithium iron manganese phosphate related projects will be affected?
Regarding the citral ISPO unit technical transformation project , the main purpose is to obtain 2,300 tons/year MPDO product through technical transformation, which is one of the derivative polyol series and is mainly used in fields such as membranes, soles, PU resins, adhesives, etc., in addition It can also be used as pharmaceutical intermediates, solvents, etc., and is a downstream product of the citral industry chain.
According to the 2021 Wanhua Citral and Derivatives Integrated Project Environmental Impact Assessment Announcement, the construction content includes: 124,000 tons/year isopentenol unit, 30,000 tons/year isopentenaldehyde unit (70,000 tons/year isopentenol, 3.0 tons/year isopentenal, 5,400 tons/year isopentenol) , 48,000 tons/year citral unit and citral derivatives unit (including: 10,000 tons/year geraniol, 15,000 tons/year citronellol) . Among them, in August 2024, each process of the 48,000 tons/year citral plant was successfully put into trial operation and successfully produced qualified products.
It was learned that recently, Wanhua Chemical has three more projects publicly announced and put into production.
Among them, the production project is that the self-developed disilane production line of Yantai Wanhua Electronic Materials Co., Ltd. (hereinafter referred to as “Wanhua Electronics”) has been successfully commissioned and trial-produced with a one-time feed.
Wanhua Electronics was established in January 2018, and its core products include monosilane, disilane, etc., and will expand related electronic specialty gas and bulk gas businesses based on this. It is reported that the company started the industrialization construction of the disilane project in June 2023. Currently, it is building a silane product production line with an annual output of 140 tons, and the designed disilane production capacity is 50 tons/year.
Disilane is a key material for advanced chip manufacturing processes and related high-order process manufacturing. With the evolution of new semiconductor technologies and processes, the demand for disilane in high-process chips such as 14nm and 7nm is increasing. In addition, ultra-pure disilane gas is also one of the important materials for manufacturing amorphous silicon thin-film solar cells, and it can also be used as a precursor in the CVD process to produce various silicon-based thin films and nanostructured materials.
Compared with the currently widely used silane, disilane products have the advantages of higher film density, significantly improved smoothness and continuity of the deposited film, good doping compatibility and low deposition temperature, and greatly increased film formation rate and production efficiency.
The purity of disilane is a core indicator. Major global enterprises include Mitsui Toatsu Chemicals of Japan, Showa Denko, SK Materials of South Korea, Voltaix Inc. of the United States, Air Liquide of France, and Speciality Chemicals of Taiwan, China. In recent years, Anhui Yagesheng, North Special Gases, Zhongning Silicon, Wanhua Electronics, Huategas, Xingyang Technology, Xingtai Silicon Materials, Hubei Xunsheng, etc. also have layouts or ongoing projects. Jinhong Gas also recently stated that disilane is in the process of industrialization.
At present, the designed production capacity of most domestic enterprises is less than 50 tons. Disilane belongs to the small and beautiful type, so please pay attention to investment.
There are two other publicly announced projects, namely (1) the annual output of 100,000 tons of lithium iron phosphate project in the first phase of Wanhua Chemical Green Power Industrial Park of Wanhua Chemical (Haiyang) Battery Materials Technology Co., Ltd.; (2) the technical transformation project of the lemon aldehyde ISPO unit of Wanhua Chemical Group Co., Ltd.
Among them, the lithium iron phosphate project has been reported before. Although the lithium battery industry is also under pressure now, lithium iron phosphate has “emerged suddenly”, and its installed market share soared to 80% in 2024, completely defeating ternary. This is mainly driven by factors such as the current decline in domestic car prices and the sudden emergence of plug-in hybrid models. Moreover, more and more overseas car companies such as Renault, Stellantis, General Motors, Hyundai, and Volkswagen have also begun to choose lithium iron phosphate batteries, and the prospects are promising.
On December 24, Longpan Technology announced that its holding subsidiaries Changzhou Lithium Source and Asia-Pacific Lithium Source revised the “Long-Term Supply Agreement” signed with South Korea’s LG Energy Solution (LGES) in February this year, increasing the sales volume of Lithium Source from 160,000 tons to 260,000 tons before 2028, with a market value close to 10 billion yuan, becoming the largest transaction contract signed in the global lithium iron phosphate market this year.
Therefore, Wanhua’s implementation of this project also has market background support, but of course the competition is also fierce.
However, it is worth mentioning that on January 2, 2025, the Service Trade Department of the Ministry of Commerce issued a notice on soliciting public opinions on the adjustment of the “Catalogue of Technologies Prohibited or Restricted from Export in China”, in which the restricted export part newly added battery cathode material preparation technologies, including lithium iron phosphate preparation technology, lithium manganese iron phosphate preparation technology, and phosphate cathode raw material preparation technology.
Of course, this refers to technology export, not product export, and the focus may be on behaviors that transfer technology through trade, investment, or economic and technological cooperation. For companies such as EASUN, 48INNO, and Longpan Technology that have laid out lithium iron phosphate and lithium manganese iron phosphate related projects overseas, it is unknown whether there will be an impact?
Regarding the technical transformation project of the lemon aldehyde ISPO unit, it is mainly to obtain 2,300 tons/year of MPDO products through technical transformation. It is one of the derivative polyol series and is mainly used in the fields of membranes, shoe soles, PU resins, adhesives, etc. In addition, it can also be used as a pharmaceutical intermediate and solvent, and belongs to the downstream products of the lemon aldehyde industry chain.
According to the environmental impact assessment public notice of the Wanhua lemon aldehyde and its derivatives integrated project in 2021, the construction content includes: a 124,000-ton/year isopentenol plant, a 30,000-ton/year isopentenal plant (70,000-ton/year isopentenol, 30-ton/year isopentenal, 5,400-ton/year isoamyl alcohol), a 48,000-ton/year lemon aldehyde plant, and a lemon aldehyde derivative plant (including: 10,000-ton/year geraniol, 15,000-ton/year citronellol). Among them, in August 2024, all processes of the 48,000-ton/year lemon aldehyde plant were successfully commissioned and trial-produced, and qualified products were smoothly produced.