HENGTRON Secures Funding for Advanced LMFP Battery Material

Emerging Chinese battery materials innovator, 珩創納米科技 (HENGTRON), has successfully closed a Series B funding round, securing several hundred million yuan (billions of Japanese yen) from 銀川育成鳳凰科創基金. This significant capital injection is earmarked for the construction of a new, large-scale production facility in Yinchuan, Ningxia Hui Autonomous Region. The facility will house a 130,000-ton annual capacity production line for lithium manganese iron phosphate (LMFP) cathode material, with an initial phase targeting 30,000 tons. The company also plans to expand output at its existing Jiangsu province site.

Founded in 2022, HENGTRON focuses on the development, production, and sale of LMFP cathode materials for secondary batteries. Their advanced materials are already finding applications in electric vehicles (EVs), electric two-wheelers, and energy storage systems. LMFP is gaining traction as a next-generation battery component, offering a compelling alternative to existing technologies. It represents an evolution from lithium iron phosphate (LFP) by substituting a portion of iron with manganese. This substitution elevates the operating voltage from approximately 3.4V to 3.8V, boosting energy density by 5-20% while maintaining a cost advantage over nickel-cobalt-based ternary materials and even offering a lower cost per kilowatt-hour compared to LFP.

A key challenge in LMFP development has been the tendency for manganese to leach out at higher concentrations, leading to electrode degradation. HENGTRON has addressed this through substantial technological innovation in material structure and manufacturing processes. Their proprietary 'solid-liquid two-phase method' is central to this, enabling uniform, atomic-level distribution of manganese and iron within the same crystal phase, thereby enhancing structural stability. Continuous improvements in carbon coating techniques and multi-element doping further refine the crystal structure, effectively mitigating manganese dissolution.

The performance metrics achieved by HENGTRON's LMFP batteries are noteworthy. They demonstrate over 2,000 charge-discharge cycles even in high-temperature environments and can retain performance for more than 18 months under elevated temperatures. In certain performance benchmarks, these batteries are reported to surpass ternary-cell capabilities. This technological prowess is underpinned by a robust patent strategy. HENGTRON has acquired core LMFP patents previously held by 米ダウ・ケミカル and has since built an extensive intellectual property portfolio covering material composition, structural design, and application methods. The company boasts approximately 100 patents, with global coverage in 32 countries and regions, positioning them as a unique entity with a comprehensive international patent network in the LMFP sector.

HENGTRON's strategic patenting includes formulations with over 70% manganese content domestically in China and over 50% internationally, complemented by patents on carbon-oxygen bonding structures and hybrid compositions with ternary materials. This creates a significant barrier to entry for competitors. The company projects holding the leading market share in China's LMFP material sales for 2024-2025, estimated at 40-50%. A full-scale entry into the automotive battery market is slated for late 2026, with anticipated supply to large trucks, passenger cars, and plug-in hybrid electric vehicles (PHEVs). Sample validation with potential automotive clients is currently underway.

The new Yinchuan facility is designated as the primary production hub for the automotive battery market. It will feature enhanced single-line production capacity compared to the existing Jiangsu site and will incorporate process designs specifically tailored for automotive applications. HENGTRON anticipates that the lower electricity and gas costs in the Ningxia Hui Autonomous Region will facilitate both cost reduction and large-scale expansion initiatives.