China Sun Group Hi-Tech Co. (CSGH)

[2morrowsGains]

CSGH = Enormous profitable growth potential...

CSGH's new product "Lithium Iron Phosphate"...

12/5/08...China Sun Group High-Tech Co. Develops New Product Lithium Iron Phosphate

- "DLX has successfully developed a new product, lithium iron phosphate, which is to be used as an anode material for the production of the next generation of lithium ion (li-ion) batteries. DLX is procuring and preparing the production equipment of Lithium Iron Phosphate, and plans to set up two new production lines with capacities of 500 tons per year to produce it."

- "Lithium iron phosphate is a necessary and essential material used to power Li-ion batteries, and its application in the global Li-ion electric automobile industry is a growing and inevitable trend."

- "We are positioning ourselves to meet anticipated global demand for lithium iron phosphate battery components used to power electronic automobiles in China and other developed nations."

- "The actual cost of the materials is one-fourth the cost of cobalt, and PROFIT MARGINS ARE TWICE AS HIGH compared to cobalt oxide."

5/18/09..."In little over a month, DLX has signed sample testing agreements with eight enterprises in Shandong Zaozhuang, Hai Ba, Beijing Zhongke, Sha'anxi and in other major Chinese provinces. These enterprises represent our core market for using our new eco-friendly lithium iron phosphate material. Following testing, we plan to begin mass marketing our product domestically."

Also, Lithium Iron Phosphate could play a HUGE role in Wind Energy! Here are a few clips from a 2/17/09 article titled "New Year, New Battery"...

- "There are many different avenues of research that can be followed in pursuit of better alternatives to current battery materials. But essentially, all of them involve the use of semi-conductor technology to control the conductivity of the material in question. Currently, the most popular new battery materials are the lithium transition metal oxides, including lithium cobaltate, lithium nickel and lithium manganate. Of these, lithium cobaltate is expensive, rare, and highly toxic; lithium nickel is difficult to produce and has poor thermal stability; lithium manganate has low capacity and poor cycle stability. As they are easier to produce on a large scale, modified lithium cobaltate is now used in batteries for phone handsets, laptops and other mobile devices. However, this material is still far from meeting the requirements in terms of cost, safety and environmental friendliness needed for use in an electric vehicle or even larger energy storage applications. If such large-scale electrical storage applications are to succeed, a technical breakthrough is required. Happily lithium iron phosphate largely fits the bill."

- "Similar to what occurred in the photovoltaic (solar cell) industry with the improvement of polycrystalline materials, China’s twin advantages of top class technology and R&D in key areas - as well as the strong business stimulus provided by a vigorous market - should lead to a rapid growth of the country’s alternative energy industry, using the development of lithium iron phosphate batteries as its focus."

- "Regardless of whether or not the technology is completely mature, or the cost of resources, the imminent explosion in the electric vehicle and wind power storage markets will ensure that the star industry of 2009 will be the “new battery."

- "Possible bankruptcies amongst the big auto manufacturers could produce a surfeit of technical professionals in the field; previous economic crises have created opportunities for emerging companies to enlarge their talent pools. If that turns out to be the case this time around, 2009 could well be the year that development of vehicles using this new battery technology takes off, with Chinese companies playing a leading role.

- Opportunity for Wind Power Accumulators...

Since the beginning of 2008, the domestic development of wind power in China has assumed enormous importance. However, a common problem with wind power is that much of the electricity generated becomes “trash energy” which can’t be used by the electric grid. The reason is very simple. There is a significant gap in the power generated on windy and windless days, and it is very difficult for power plants to control this variation. The electric grid is ill equipped to deal with sudden surges in output, making the development of an efficient and reliable energy storage device paramount.

This problem is not unique to China. The US, India, Germany and Denmark have all faced similar problems caused by the unpredictable output of electricity generated from solar power, wind power and other renewable energy sources. However, the challenge is particularly acute in the China and the US. The reason is quite evident - both countries are vigorously pressing ahead with policies to encourage wind power generation and their installed capacity of wind farms is increasing too quickly.

Take China for example: From 2006 to the end of 2007, its installed capacity of wind power more than doubled from 2.6 million kilowatts (kW) to 6 million kW, while at the same time, the increase worldwide was just 27%. By the end of 2008, the installed capacity of wind power generation in China was estimated to be 10 million kW, and expected to further rise to 20 million kW by 2010. It is predicted that the increase will begin to fall slightly after 2010, but will still remain above 60%. Of course, it is not realistic to expect that a power storage solution can be applied to all wind farms. However even if just 10% of wind farms used accumulators for power storage, a mass market would emerge for the appropriate battery materials, not only in China but also around the world.

Faced with this situation, Germany - now a major user of wind power - adopted a solution that can work only temporarily. It has established a fossil fuel power plant close to nearly every wind power plant. When the power generated by the wind power plant drops, the fossil power plant operates to replenish the power to ensure grid safety. Germany is also studying methods of storing power through air compression. However these methods are rather inefficient as dust and moisture in the air cause loss of power - or even wear and tear on equipment. In addition, there is no simple energy storage device like an accumulator. Instead, another complete facility, such as a power plant, has to be established, thereby pushing costs up. In some cases, construction of these may take as long as two to three years. A much simpler and more direct solution is to use an accumulator for power storage, such as the new lithium iron phosphate battery, which features very small power loss and a long service life. In addition, while lithium iron phosphate batteries are much bulkier and have a larger footprint than those using other materials, they cost significantly less. As a result, while not suitable for handsets and laptops, where small size is important, they are applicable to larger devices.

Batteries made of lithium iron phosphate are suitable for use in production line robots or other large equipment settings where size is not at a premium. Duan Zhenzhong, president of Tianjin STL Energy Technology Co., Ltd., says that the technical problems presented by large energy storage accumulators are far fewer than those facing electric vehicles; therefore he predicts that in 2009 the widespread use of lithium iron phosphate batteries is more likely in the former than in the latter. In addition to the manufacturing of wind power generators, 2008 also saw an upsurge in investment in alternator devices and energy storage devices. But the deployment of such accumulators is still far from meeting the demand arising from the replacement of thermal power stations with wind power farms in the future.

Although the prices of oil, metal and other raw materials have dived since the onset of the economic crisis, they are still likely to rise over the coming 5-10 years because of the rising demand from India, China and other emerging economies. Starting from this year the gradual replacement of fossil fuel-powered vehicles by electric vehicles has become a reality. China, along with many other countries in the world, is adopting a policy of encouraging the substitution of traditional thermal power stations by wind power generation. The mass construction of wind farms and the urgent problem of merging the power generated by these to the national electric grid or power storage devices will spark new demand in 2009. In many other fields where electric power may be needed, batteries using lithium iron phosphate anodes are an ideal, practical choice.

It should be noted that as part of its defense policy the Chinese government built a large number of nuclear power, nonferrous metal and material science research facilities, and trained a large number of scientists and engineers in these fields. In the area of material science in particular, China is no slouch in comparison to developed countries. At the same time, the country has invested heavily in the production of basic raw materials. Here over-construction, due to policy and management inadequacies, has resulted in relatively cheap products. Last but not least, China is an enormous market; some areas of demand that have become saturated in developed countries are still wide open here. In short, due to a complex array of factors, the new materials and energy market in China will undoubtedly witness spectacular development in the coming years.
http://www.cbfeature.com/special_coverage/news/new_year_new_battery/the_technology_business_in_2009/