The inaugural phase of the green power industrial park built by Wanhua Chemical Group Co Ltd in Haiyang, a county-level city under Yantai, Shandong province, commenced operations on Saturday, alongside the groundbreaking ceremony for its second phase. The event marks a significant milestone in Yantai's pursuit of green and low-carbon development.

The first phase has an annual production capacity of 100,000 metric tons of lithium iron phosphate (LFP) battery materials. Strategic partnerships have been forged with leading domestic and international clients, said the company.

Spanning over 120 hectares with a total planned investment of 16.8 billion yuan ($2.4 billion), the Haiyang facility adopts cutting-edge LFP cathode material technology. Its products deliver high energy density, ultra-long cycle life and superior safety performance, catering to diverse demands from the power battery and energy storage markets.

"The new energy industry has become a core engine driving industrial transformation and economic growth. We are seizing this historic opportunity to cultivate battery materials as our second pillar business, striving to become a global industry leader in battery materials," said Liao Zengtai, chairman of Wanhua Chemical Group Co Ltd, which is based in Yantai.

The project is backed by a research team of more than 800 technicians at Wanhua's battery materials research and development center.

"The Haiyang facility serves as a key pivot in accelerating the company's strategic transition by integrating chemical and new energy sectors," said Liao.

By integrating wind, solar and storage systems, the park aims to become a model for the national dual-carbon goals — peaking carbon dioxide emissions before 2030 and ultimately reaching carbon neutrality before 2060.

Battery materials, as a critical link in the new energy industry chain, hold vast potential. On March 17, Wanhua started construction on a park in Laizhou, also a county-level city under Yantai. The Laizhou facility is set to house a 650,000-ton LFP materials project.

Both parks will adopt a green power system integrating wind, solar, storage and grid infrastructure to enable low-carbon operations throughout the industrial chain, meeting stringent global carbon footprint requirements.

The two green power industrial parks in Haiyang and Laizhou underscore Yantai's robust momentum in advancing green and low-carbon sectors, and in expanding its new energy industrial cluster, said Wang Songjie, director of Yantai Municipal Development and Reform Commission.

"Yantai has rolled out clean energy projects with a total investment of over 700 billion yuan, establishing a new energy system integrating nuclear, wind, solar, hydrogen and liquefied natural gas. The city's installed capacity of clean energy has surpassed 20 million kilowatts,"Wang said.