Guizhou chemical project advances green goals

A phosphate and coal chemical integration project located in Southwest China's Guizhou province, the largest industrial project in the province's history, will further transform local resource strengths into industrial and economic advantages, experts say.

With a total investment of approximately 73 billion yuan ($10.25 billion), the project, once operational, is expected to achieve an annual output value of over 120 billion yuan and consume a substantial amount of raw materials each year, including 13.21 million metric tons of coal and 4.7 million tons of phosphate.

With advanced domestic equipment and technology processes to create a complete industrial chain for new energy and new materials, the project, located in Bijie, injects new momentum into the research, development and production of new energy power batteries and materials, said Lin Boqiang, head of the China Institute for Studies in Energy Policy at Xiamen University.

"The project's scale and ambition highlight the growing recognition of the need to align traditional resource extraction and processing industries with the demands of a greener economy, which will transform Guizhou's resource-rich regions into hubs of advanced industrial activity, potentially positioning the province as a key player in the global market for new energy materials."

The project is a joint investment by three private enterprises: Tsingshan Holding Group Co Ltd, the world's largest supplier of strategic resources like nickel and chromium, Huayou Holding Group, a leading global enterprise in new energy lithium battery materials, and Huafon Group, the world's largest producer of adipic acid.

The project will contribute to Guizhou's efforts to establish a national base for deep processing of resources and to advance the research, development and production of new energy power batteries and materials, according to the local government.

Huayou, for example, is expanding its capacity globally, and Guizhou's abundant phosphate and coal resources make it an ideal location for this integration project.

Lin said that by integrating phosphate and coal processing with new energy and materials production, the project not only leverages the region's abundant natural resources, but also moves it up the value chain into more technologically sophisticated and economically lucrative sectors.

It not only maximizes the economic value derived from these resources, but also minimizes wastage and environmental impact. By channeling these resources into the production of new energy power batteries and related materials, the project aligns with global trends toward electrification and renewable energy, making it a critical part of the supply chain for green technologies, he said.

The involvement of industry leaders like Tsingshan and Huafon, each with a strong technical background, ensures that the project will benefit from cutting-edge technology and processes, which is crucial for maintaining competitiveness in the rapidly evolving global market for new energy materials, particularly in a context where innovation and efficiency are key drivers of success, he added.

According to Lin, as the world increasingly shifts toward sustainable energy solutions, demand for advanced materials like those used in new energy power batteries is skyrocketing. The Guizhou project's focus on producing these materials positions it to meet growing global demand, particularly as industries and governments worldwide strive to reduce carbon emissions and transition to cleaner energy resources.

The project is located in Zhijin county, which has coal resources with estimated reserves of 15.18 billion tons, accounting for 20 percent of the province's total. Phosphate reserves amount to 3.5 billion tons, ranking among the top in the province.

In 2024, Zhijin is expected to achieve an industrial output value of approximately 12.7 billion yuan. The leading industries — coal-phosphate chemicals and modern energy — are expected to generate about 11.8 billion yuan, accounting for some 92.9 percent of the county's total industrial output value above a designated scale.