Tianchi Materials locks in historic mega-deal!

(Source: Lang Ge Finance)

Tianci Materials, performance explodes!

On March 10, Tianci Materials was the first to disclose its 2025 annual report, delivering an impressive performance report.

In 2025, Tianci Materials achieved revenue of 16.65 billion yuan, a year-on-year increase of 33%; net profit of 1.362 billion yuan, a surge of 181.43% year-on-year.

Especially in the fourth quarter of 2025, quarterly net profit reached 941 million yuan, a jump of 554.09% year-on-year, directly surpassing the total net profit of the first three quarters, making the performance truly stunning!

Who would have thought that not long ago, Tianci Materials was still in a low performance period.

In 2023 and 2024, impacted by industry supply and demand imbalance, the company’s revenue and net profit declined for two consecutive years with double-digit decreases, and net profit in 2024 fell by 74.4%.

From halving performance to a strong rebound, from profit decline to a quarterly explosion, how did Tianci Materials achieve this stunning turnaround?

Core engine:

Lithium Hexafluorophosphate Bottoming Out and Rebounding

The core driver of Tianci Materials’ performance rebound this time is the strong rise in lithium hexafluorophosphate prices.

As a key solute in electrolytes, lithium hexafluorophosphate accounts for 53% of electrolyte costs and is the core raw material to improve electrolyte conductivity and stability, its importance is self-evident.

By the end of December 2025, the price of lithium hexafluorophosphate rose to 180,000 yuan/ton, an increase of 260% from July!

This round of price increase is the result of joint effects from both supply and demand sides.

On the supply side, industry leaders are taking concrete actions to limit capacity expansion. In 2025, companies like Tianci Materials and Tianji Co., Ltd. (rights protection) have no plans for large-scale capacity expansion, while smaller manufacturers, due to cost considerations, are accelerating exit.

On the demand side, the dual growth of power batteries and energy storage markets is expected to see global lithium battery shipments grow by 20% year-on-year in 2026, with demand remaining strong.

Driven by both sides, the market space for lithium hexafluorophosphate continues to expand. It is forecasted that from 2025 to 2030, global demand will increase from 300,000 tons to 700,000 tons, more than doubling.

The electrolyte industry adopts a pricing model linked to raw material and terminal prices. The rise in upstream lithium hexafluorophosphate prices quickly transmits to the electrolyte end market, with electrolyte prices rising to 34,000 yuan/ton by December 2025.

Supported by the rising electrolyte prices, Tianci Materials’ performance has smoothly rebounded. This growth confidence is rooted in the company’s core advantage.

Performance rebound confidence:

Technology and Capacity Support

If the rise in lithium hexafluorophosphate prices is the wind that propelled Tianci Materials’ performance rebound, then the company’s core technological breakthroughs in this field are the fundamental reason it has firmly seized this opportunity.

As early as 2007, Tianci Materials signed an agreement with North American experts to obtain the rights to lithium hexafluorophosphate production technology.

In 2011, the company successfully achieved independent mass production of lithium hexafluorophosphate at its Jiujiang base, with an output of 82 tons that year, marking a key step toward reducing reliance on imports.

High self-supply of key raw materials further enhances the company’s cost advantages throughout the entire production process.

In the first half of 2025, Tianci Materials’ self-supply rate of lithium hexafluorophosphate exceeded 98%, and high-purity lithium carbonate achieved 100% self-supply. This self-sufficiency mode not only improves supply chain stability but also further consolidates cost advantages.

Riding the wave of electrolyte price increases, the company’s gross profit margin in 2025 rose to 22.24%, with net profit margin reaching 8.07%.

It’s worth noting that the gross profit margin in the first three quarters of the year never exceeded 20%, but in the fourth quarter, it suddenly jumped to 30.12%, directly boosting the overall gross profit margin for the year by 3 percentage points compared to last year.

Strong technical and cost advantages have earned Tianci Materials recognition from downstream leading clients, maintaining abundant order resources.

Since 2021, top battery manufacturers like CATL and Guoxuan High-Tech have successively placed orders with the company.

In November 2025, the company signed long-term supply agreements with Guoxuan High-Tech and Zhongchuang New Energy, with a total supply of 1.595 million tons of electrolyte from 2026 to 2028, securing large orders and long-term growth potential.

To meet large orders, the company continues to expand capacity.

From 2021 to 2025, Tianci Materials’ ongoing construction projects increased from 987 million yuan to 2.4 billion yuan. The company has established production bases in Guangzhou, Jiujiang, Tianjin, and other locations, with an annual electrolyte capacity of 860,000 tons.

In 2026, a 200,000-ton project in Jiangmen will be put into operation, along with a 150,000-ton integrated base in Morocco and a 200,000-ton project in North America, all accelerating to ensure order delivery.

With abundant orders and strong capacity, Tianci Materials’ market position continues to solidify.

Since 2016, the company has ranked first globally in electrolyte sales for nine consecutive years, with a 2024 global market share of 30%, leading competitors like Nanjing Zhaoyang and Ruitai New Materials.

With its strong strength, Tianci Materials has established a foothold in the electrolyte field. But its ambitions go beyond maintaining current dominance; it has already laid out plans for the next core battlefield.

Next battlefield:

Early Layout of Solid-State Batteries

While expanding traditional electrolyte capacity, Tianci Materials has already stepped out of its existing track and turned its focus to the emerging field of solid-state batteries.

Lithium sulfide, as the core raw material for sulfide solid electrolytes, is the key entry ticket into the solid-state battery arena.

Tianci Materials uses a liquid-phase reprecipitation method to produce lithium sulfide, precisely removing impurities through adsorption chemical reactions, resulting in a product with a purity of up to 99.9%.

Currently, the company’s layout in the solid-state battery field has entered a substantive promotion stage.

The company’s pilot production line for hundreds of tons of lithium sulfide and solid electrolytes is expected to be operational in the third quarter of 2026. The UV glue frame supporting solid-state batteries has achieved small batch sales, completing the initial layout from core raw materials to supporting materials.

This rapid progress is supported by continuous R&D investment.

From 2021 to 2025, R&D expenses increased from 378 million yuan to 847 million yuan, with R&D expense ratio rising from 3.4% to 5.1%. Ongoing capital investment has strengthened technological innovation.

By the end of 2025, the company had applied for over 1,300 patents, with 692 granted. Its patent portfolio covers core areas such as batteries, electrolytes, and electrolyte material preparation, building an unshakable technological moat.

With solid technical accumulation and continuous R&D efforts, Tianci Materials has achieved the landing of core raw materials and supporting materials in the new solid-state battery track, steadily building a technological advantage and development foundation in this emerging field.

This performance turnaround of Tianci Materials is not only a precise grasp of industry cycles but also the result of long-term deep R&D efforts.

Currently, the company’s existing and planned new capacities are steadily advancing, core technological advantages are continuously consolidating, and its layout in the solid-state battery field is beginning to show results, providing a solid support for its stable profitability.