GCL Technology (03800): Construction work has begun on the second phase of the Leshan Project to add 200,000 tons of additional production capacity

Zhitong Finance App News, GCL (03800) announced that regarding the progress of the lithium iron phosphate materials business, the first phase of the company's 200,000 ton lithium iron phosphate (LFP) cathode material project (Leshan project) in Leshan, Sichuan Province, China was officially put into operation in June 2026.

The Leshan project uses the GCL-PHY one-step process technology used by GCL Group Co., Ltd., the contact person of the company's main shareholder, free of charge, and is the world's first iron red lithium iron phosphate preparation technology.

The board of directors confirmed that after the Leshan project was put into operation, the product has completed strict verification procedures for major customers and met customer requirements for product performance. The Group's LFP materials business has received multiple orders, production capacity continues to rise, and it is expected that full production operation will be achieved by the end of October 2026.

On the date of this announcement, the Group has begun construction work on the second phase of the Leshan Project to add 200,000 tons of additional production capacity. The second phase of the project is expected to be put into operation at the end of the first quarter of 2027.

The Group's LFP materials business has signed orders to fully cover the company's entire planned production capacity, and the customer is a leading enterprise in the industry. With the gradual release of production capacity in the Leshan project and the continuous delivery of orders from leading users in the market, the Group will further consolidate its leading position in the field of lithium iron phosphate cathode materials.

The successful commissioning of the Leshan project marks the Group's “Optical Storage Tongshou” strategy entering a new stage of development: 1. The second growth curve accelerates development: The LFP materials business will contribute additional revenue and profit to the Group, optimize the revenue structure, and reduce the dependence on the PV silicon single business. 2. The technical moat continues to deepen: The large-scale application of the GCL-PHY one-step process has further verified the comprehensive advantages of this technology route in terms of cost, efficiency, and environmental protection, and has built a high technical barrier. 3. Industrial synergy effects are evident: granular silicon (basic photovoltaic panel) and lithium iron phosphate (second energy storage curve) form a positive cycle “from silicon cost reduction to PV installation growth, leading to an increase in demand for energy storage support, leading to an increase in LFP material shipments”. The synergy effect between business sectors is remarkable. 4. Valuation logic reshaping: As the share of revenue from the LFP materials business increased, the Group changed its valuation logic from a traditional “PV cycle stock” to a “multi-product new energy materials platform enterprise”.

Regarding the progress of the silicon-carbon anode business, the board of directors confirmed that the Group's 10,000-ton silicon-carbon anode and supporting porous carbon pilot project has recently been successfully put into operation in Xuzhou. Among them, self-developed porous carbon materials are the core special raw materials for the company's silicon-carbon anode products. The silicon-carbon anode pilot line uses a new process with a single furnace of 1,000 tons/year. Relying on the Group's independent intellectual property rights and self-developed core process construction, it marks important milestones in the field of silicon-carbon anode key materials, large-scale preparation and equipment development.

On the date of this announcement, the project has entered the process optimization and product verification stage, and sample delivery and verification work for leading customers will be carried out one after another. In the future, the company will combine customer verification progress and market demand to steadily advance production capacity climbing and product introduction, and accelerate the industrialization process of silicon-carbon anode materials.

On the date of this announcement, the company and the People's Government of Wutongqiao District of Leshan City signed a formal cooperation agreement on the transformation of the Leshan project from granular silicon to silicon-carbon anode project to resolve the upgrading funds required for the project and promote the implementation of the transformation and upgrading project in an orderly manner.

Currently, the silicon-carbon anode industry is entering a critical window of industrialization. The Group has 600,000 tons of silane production capacity. As the world's largest silane manufacturer, it is expected to seize industry development opportunities and build a new business growth curve. According to the Group's internal estimates, based on actual data verification of the pilot line that has already been built, compared with the construction of a new production line of the same scale. Through the reuse of granular silicon production facilities and the implantation of silicon-carbon anode production technology, the project capital expenditure has been drastically reduced, and the production cycle has been significantly reduced; the production capacity of a kiloton-class single furnace is far superior to mainstream 100 kg production units in the industry, achieving cost optimization, energy saving and carbon reduction. In summary, the Group will build the world's largest silicon-carbon anode production base in Leshan. With leading cost control capabilities in the industry, the price threshold for silicon-carbon anode materials will be drastically lowered on the premise of maintaining good profit margins, promoting a rapid rise in the penetration rate of silicon-carbon anodes in downstream applications, and helping the Group to gain a first-mover advantage in the early stages of industrialization.