Witnessing reform success in Northwest China's novel development area

LANZHOU — In the pristine dust-free workshop of Gansu Defu New Materials Co Ltd, a delicate copper foil, as fine as the wings of a cicada, glides gracefully off the production line.

The company, located in Lanzhou New Area, Northwest China's Gansu province, is able to manufacture premium copper foil at an astonishing thickness of just 4.5 microns, a fraction of the width of a human hair.

Thanks to advanced processing techniques, this ultrathin material maintains its robust energy density and tensile strength. Using this advanced copper foil as a critical component, the new generation of electric vehicle batteries promises to be more compact and possess an extended driving range, signaling a promising future in the market.

"Our investment in Lanzhou is driven by the advantages of raw materials, energy and location," said Zhang Tao, chairman of the company.

Zhang said Gansu's stable supply of copper raw materials can ensure a rapid increase in production capacity. Moreover, the province's abundance of wind and solar energy resources means the company can fully leverage the advantages of green electricity resources, which not only reduce production costs, but also lay the foundation for exporting products to markets like the European Union that plan to set carbon tariffs.

"In addition, Lanzhou's strategic position as a hub along the Belt and Road provides favorable conditions for the company's future global layout," Zhang added.

In 2012, Lanzhou New Area was approved by the State Council as the fifth national-level special economic development zone, which is also the first State-level new development area in Northwest China.

From 2011 to 2023, the regional GDP of Lanzhou New Area increased from less than 500 million yuan ($70 million) to 37.5 billion yuan.

In 2018, Defu established its roots in the area, pioneering as the locality's premier manufacturer of high-grade materials for new energy vehicle batteries.

Within a few years, the company's annual output has impressively surged to 70,000 metric tons, securing its position as a prominent supplier of NEV battery materials on both a national and global scale.

This meteoric rise is a testament to the new area's industrial evolution, steering away from traditional "black" industries toward a more sustainable and environmentally friendly "green" economy.

Currently, Lanzhou New Area has a group of top domestic new energy and new material enterprises, represented by Defu New Materials, Gansu Hailiang New Energy Materials, China Baowu Steel Group Corp, and others.

Once all the projects under construction are fully operational, the area will constitute an industrial cluster of NEV battery materials with an annual output of 600,000 tons of anode materials, 350,000 tons of high-performance copper foil and 200,000 tons of lithium iron phosphate cathode materials. This will help Gansu evolve from a province rich in raw materials to one that is strong in new materials manufacturing.

An official with the area's management committee told Xinhua News Agency that in the beginning, the area did take some detours in setting its development course.

"Now we are fully aware that we must be based on our own advantages and characteristics, and adhere to high-quality development to find a way out amid such fierce market competition."

The area, in recent years, has been making continuous efforts to improve the business environment and simplify administrative procedures for business entities.

In May 2022, Lanzhou Hongbin New Energy Development, which is based in Foshan, South China's Guangdong province, built a plant in Lanzhou New Area with a planned annual output of 50,000 tons of graphitized materials.

The new factory began trial production in January 2023 and achieved full production in April 2024, becoming an important supplier of NEV battery materials in less than two years.

"During the construction process, we once faced the problem of insufficient power supplies. Officials in the new area swiftly coordinated with relevant departments, and a 330-kilovolt power line was built to guarantee our on-schedule operation," said Wang Sheng, the company's director of operations.

In recent years, Lanzhou New Area has seen a robust annual increase in business entities, with an average annual growth rate exceeding 20 percent. This surge has been driven by a vibrant cohort of companies characterized by advanced technology, promising market potential and significant economic influence, which have significantly bolstered the area's development.

The third plenary session of the 20th Central Committee of the Communist Party of China has outlined strategic initiatives to establish a high-standard socialist market economy.

Wang Shuzheng, deputy director of the office of the area's Party working committee, highlighted a pivotal aspect of this economy.

"It should be both dynamic and well-governed."

Wang emphasized the importance of balancing government oversight with market freedom, stating that ongoing reforms aimed at refining systems and mechanisms are essential to foster an equitable and energetic market landscape.

Xinhua