[2020.07.06 Morning meeting Summary of Cobalt Lithium New Energy] the terminal market demand gradually resumes the strong willingness of Qinghai lithium salt manufacturers to increase prices.

SMM, July 6:

Battery terminal market:

In the power market, many new cars were released in the second half of the year, such as BYD's "Han", Great Wall Euler R2, Weilai EC6 and so on, which not only improved the mileage, but also greatly improved the quality and performance of the whole car. The launch of many new models in the second half of the year, which will compete with Tesla's Model 3, will also lead to a substantial increase in demand for power batteries. From the point of view of the small power market, the output of electric two-wheelers increased significantly in May compared with the same period last year, mainly due to the demand of consumers and the vigorous promotion of electric two-wheelers in the field of takeout and express delivery. The main battery factories in the small power market have been basically at full production since May, and the orders of other battery factories in the small power market have also increased significantly.

Price of upstream raw materials:

The order of cobalt: 3C consumer battery factory is basically stable in July. Affected by the shortage of domestic cobalt raw materials, the procurement cost of the battery factory is relatively high. In the near future, the procurement plan is to lower the price to balance the early cost, and the prices of lithium cobalt oxide and cobalt tetroxide are down. Last Thursday, the transaction price of cobalt oxide began to appear below 172000 yuan / ton, and this price may gradually increase this week. Cobalt salt trading was light last week, cobalt chloride prices due to downstream prices, gradually loosened, and cobalt sulfate price difference slowly narrowed.

Lithium: a large factory in Qinghai has a strong willingness to raise prices, mainly considering the current recovery of downstream demand for lithium iron phosphate and lithium manganate is relatively smooth, and the purchasing willingness of purification enterprises is increasing, and the shipments of industrial carbon factories are tight. However, at present, the supply and demand structure of battery-grade lithium carbonate is still in a state of obvious surplus, the procurement of downstream and purification enterprises is cost-oriented, the inventory pressure of other industrial carbon manufacturers is still intended to ship as soon as possible, and short-term price increases may be possible. in the long run, attention should be paid to the speed of recovery of terminal demand and the proportion of imported carbon from overseas.

Positive materials and precursors: in terms of ternary materials and precursors, the price of cobalt salts dropped slightly, the precursors basically had no room for decline, the price of the precursors manufacturers was obvious, the quotation rose, and the actual transaction price remained basically unchanged. The price of ternary materials downstream is relatively stable. The price in the digital market fluctuates slightly, the terminal demand has not increased, the market competition is more fierce, and the prices of some small precursor factories have dropped slightly. Transmitted to ternary material enterprises, there is a low-price transaction phenomenon.

Nickel: on Friday, Shanghai nickel rose from 102930 yuan / ton to 105970 yuan / ton. some nickel sulfate plants chose to wait and see and did not quote to the outside world for the time being. some nickel sulfate plants were still willing to ship goods, and the price of battery-grade nickel sulfate was raised by 100 yuan 200 yuan per ton. at present, the mainstream price of battery-grade nickel sulfate market is about 22850 yuan / ton.

News:

1. [Tesla second quarter sales: 90650 vehicles worldwide, 31000 vehicles in China] recently, Tesla released its second quarter sales figures. Data show that Tesla delivered 90650 vehicles in the second quarter, including 10600 for Model X and Model S and 80050 for Model 3 and Model Y.

2. [LG Chemical plans to produce batteries for Tesla in South Korea] on July 3, a person familiar with the matter said that the market demand for Intezra vehicles has expanded and battery orders have been increased. South Korea's LG Chemical Company began to produce car batteries for it at its local factory in South Korea this year. "Tesla is selling very well, so Tesla is asking not only LG Chemical, but also other suppliers to increase supply," the person said. Another person familiar with the matter also said that LG Chemical is converting some of South Korea's local production capacity to Tesla batteries, and its factory in Nanjing, China, has begun producing batteries for Tesla.

3. [Funeng Technology Co., Ltd. IPO received strategic investment from Daimler Greater China Investment Co., Ltd.] Funeng Technology (Ganzhou) Co., Ltd. (hereinafter referred to as "Funeng Technology") has taken a key step in consolidating its position as the world's leading manufacturer and supplier of electric vehicle batteries. Daimler Greater China Investment Co., Ltd. will participate as an important strategic investor in the IPO session of the Science and Technology Board to be completed this month. In addition to strategic investment, Funeng Technology and Daimler Greater China have signed a comprehensive commercial cooperation agreement to provide batteries for Mercedes-Benz's global lineup of new electric vehicles over the next decade. The signing of this strategic investment and commercial cooperation agreement will, on the one hand, guarantee Funeng Technology's global power battery supply to Mercedes-Benz. On the other hand, Funeng Technology can plan the battery capacity of its production bases around the world according to the needs of Mercedes-Benz. The key goal of this strategic investment is to develop and industrialize leading high energy density batteries, and through closer partnerships, the advantages of Funeng Technology in the research and production of power batteries will be further unleashed. With the deepening of the partnership, not only will Mercedes-Benz models introduce high-energy-density batteries from Funeng Technology, but also closer cooperation in the field of sustainable development announced in 2019. Under the agreement, Funeng Technology plans to build battery production plants in the European Union and the United States, and will be designed as a carbon-neutral plant from the beginning of its construction.

SMM battery materials research team

Qin Jingjing 021 Murray 51666828

Mei Wang Qin 021 Mui 51666759

Huo Yuan 021 Murray 51666898