Wanrun’s Bold Move: Building LFP Battery Plant in the U.S. Amid Geopolitical Strains

China’s Hubei Wanrun New Energy Technology, a leading producer of lithium-iron-phosphate (LFP) cathode active materials, has announced plans to construct a state-of-the-art production facility in South Carolina, U.S. The project is expected to begin operations in 2028, with an investment totaling $167.6 million and a production capacity of 50,000 tons per year. The construction is anticipated to take 30 months, and the first phase will include a 9,000-ton capacity.

Wanrun has already established a subsidiary, Wrestore Technology, in South Carolina to facilitate the venture. This move aligns with a growing trend among Chinese companies to invest in overseas markets due to mounting geopolitical tensions and restrictions on materials produced in China.

Geopolitical Challenges and Wanrun’s Strategic Expansion

Geopolitical tensions between China and Western nations, coupled with growing material restrictions, have driven Chinese companies to explore opportunities abroad. Wanrun’s expansion into the U.S. market mirrors similar ventures by other major Chinese battery firms, such as EVE Energy, which began constructing an LFP battery plant in Mississippi earlier this year.

Wanrun's shipments of LFP materials increased by 24% year-on-year in the first half of 2023, reaching 78,000 tons. The company’s strong partnerships with industry leaders like CATL, BYD, and Gotion High-Tech position it well for continued growth. In China, LFP batteries dominate the market, with 75% of the production and 74% of the installed volume in August 2023. While lithium-ion battery and electric vehicle manufacturers outside China have traditionally preferred ternary CAM, rising interest in LFP technology suggests that Wanrun’s move may capture significant global market share in the coming years.

As international interest in LFP batteries grows, Wanrun’s U.S. facility could play a pivotal role in expanding the technology’s global footprint.