Invest 1.1 billion in Ganfeng Lithium Industry to set up two new companies

"Lithium King" Ganfeng Lithium Industry recently set up two new companies aimed at mineral mining and waste batteries.

Specifically, Ganzhou Ganfeng Renewable Resources Co., Ltd. was established on January 24, with a registered capital of 100 million yuan and Shen Haibo as its legal representative.

The company's business scope includes general projects: new energy vehicle waste power battery recovery and cascade utilization (excluding hazardous waste management), metal scrap and debris processing, metal material sales (in addition to licensing business, can independently operate projects that are not prohibited or restricted by laws and regulations in accordance with the law.

Equity penetration data show that the company is a wholly owned subsidiary of Ganfeng Lithium Industry.

Sichuan Ganfeng Mining Co., Ltd. was established on January 25, with Wang Dabing as its legal representative, with a registered capital of 1 billion yuan. Its business scope includes: mining of mineral resources (non-coal mines), exploration of mineral resources, basic geological exploration, mineral processing, etc.

Equity penetration shows that the company is jointly owned by Sichuan Ganfeng Lithium Co., Ltd., a wholly-owned subsidiary of Ganfeng Lithium Industry, and Sichuan Baren New Energy Co., Ltd.

Just three days before the establishment of the two new companies, January 22, Ganfeng Lithium subsidiary Ganfeng Lithium Power official Wechat reported that the first batch of 50 Dongfeng E70 electric vehicles equipped with Ganfeng solid-state batteries had been officially delivered.

It should be noted that at present, in order to limit the use of the demonstration operation, it has not been mass produced on a large scale.

In addition to the good news one after another on the occasion of the Lunar New year, Ganfeng lithium industry is also quite rich in 2021.

The net profit is expected to be happy. On January 25, Ganfeng Lithium Industry issued an annual performance forecast for 2021. It is estimated that the net profit belonging to shareholders of listed companies in 2021 is 4.8 billion yuan to 5.5 billion yuan, an increase of 368.45% to 436.76% over the same period last year. It is estimated that the net profit after deducting non-profit for the whole year is 2.9 billion yuan to 3.6 billion yuan, an increase of 621% to 795.04%.

The rise of volume and profit of lithium salt products is the main driving force for the net profit of Ganfeng lithium industry in 2021. Ganfeng Lithium Industry pointed out in the report that with the rapid development of new energy vehicles and energy storage industry, downstream customers' demand for lithium salt is growing strongly, so the company's production and sales of lithium salt products are increasing and product prices are rising.

The benefit of battery business has increased significantly. In the performance forecast, Ganfeng Lithium Industry also mentioned that in 2021, the company's lithium battery plate new projects gradually put into production, capacity gradually released, Synchronize led the company's operating net profit to rise. According to the data for the first half of 2021, the revenue of Ganfeng lithium battery plate reached 764 million yuan, an increase of 84.3% over the same period last year, which was the largest increase in the company's performance.

Not long ago, Ganfeng Lithium subsidiary Ganfeng Lithium Power Phase II annual production of 10GWh new lithium battery project, including lithium iron phosphate square hard shell cell, soft package cell and solid-state battery production line.

The advantages of the industrial chain promote the performance to continue to grow. Ganfeng lithium industry has a complete lithium battery ecological industry chain. In terms of resources, it has a wide distribution of lithium ore sources such as salt lake, spodumene and lithium clay. In 2020, the market share of lithium hydroxide is 28%, and the production capacity of lithium carbonate is the first in the country. It also won a number of lithium ore resources at home and abroad in 2021.

In addition to the reserves of the top resources, Ganfeng Lithium also has a strong production capacity of battery raw materials. Data show that as of December 2021, the production capacity of battery-grade lithium carbonate in Ganfeng lithium industry is 43000 tons / year, and that of battery-grade lithium hydroxide is 81000 tons / year. In addition, the new production capacity of 50, 000 tons of lithium hydroxide and 40, 000 tons of lithium carbonate in the first phase of Caucahri-Olaroz Salt Lake will be put into production this year, ensuring steady growth in production and sales.

Ni Wen of Guojin Securities pointed out that considering the existing resource project layout and lithium salt expansion plan, Mexico Sonora lithium clay 20, 000 tons + CO Salt Lake II 20, 000 tons + Mali Goulamina spodumene project 60, 000 tons, the production capacity is expected to exceed 260000 tons by 2025, achieving a resource self-sufficiency rate of nearly 80%.

The strong resource self-sufficiency rate is the foundation for Ganfeng lithium industry to maintain its leading edge, and now it has set up a new mineral mining company and battery material recycling company, which will help to broaden the resource channels and further improve the resource self-sufficiency rate. In 2022, the new energy vehicle market will undoubtedly usher in vigorous development, the new lithium battery project of Ganfeng lithium industry will be put into production, and the prices of various raw materials will rise all the way at the beginning of this year. Ganfeng lithium industry 2022 performance is expected to continue to grow.