On April 9, Mengguli (301487.SZ) disclosed its intention to enter into an investment agreement with the Administrative Committee of Dazhou High-tech Industrial Park. The company aims to invest RMB 500 million in establishing a wholly-owned subsidiary, Sichuan Mengguli New Material Technology Co., Ltd., which will be tasked with implementing the fourth-generation and above lithium iron phosphate integration project. This ambitious project encompasses two key sub-projects: lithium iron phosphate and iron phosphate production, both of which will be developed in two distinct phases.

Specifically, the lithium iron phosphate project will see a total investment of approximately RMB 1.8 billion. The initial phase will involve the construction of a 50,000-ton production line, requiring an investment of around RMB 700 million. Subsequently, the second phase will add a 100,000-ton production line, with an estimated investment of RMB 1.1 billion. Meanwhile, the iron phosphate project is slated for a total investment of approximately RMB 1.2 billion, with each phase focusing on the establishment of a new 100,000-ton production line.

The first phase of the entire project is anticipated to complete equipment commissioning by March 31, 2027. The second phase will kick off at an opportune time following the completion and operationalization of the first phase. This strategic investment is designed to enhance the company's product portfolio and ensure comprehensive coverage of mainstream cathode materials. However, the matter still requires submission to the shareholders' meeting for thorough deliberation and approval.