The Ministry of Industry and Information Technology is coming! Lithium-related stocks pull up lithium carbonate and slow down how can lithium go? [hot stocks]

SMM February 28th: today, lithium battery, lithium mining and salt lake lithium extraction plate intraday shock higher, lithium battery stocks, including China Mineral Resources, Sichuan Energy Power and Fengyuan shares, including a number of stocks rose by the daily limit, the performance is particularly strong.

On the news side, at the press conference of the State Information Office held today, Xin Guobin, vice minister of the Ministry of Industry and Information Technology, made it clear that this year will focus on meeting the production needs of power batteries, appropriately speed up the development of domestic lithium, nickel and other resources, and crack down on unfair competition such as hoarding and driving up prices. At the same time, improve the power battery recycling system, support efficient disassembly, recycling and other technologies, and constantly improve the recovery ratio and resource utilization efficiency. "View details

It is worth mentioning that this is the third time that the Ministry of Industry and Information Technology and other ministries have mentioned power battery recycling in just two months this year. On February 10, eight ministries and commissions jointly issued the Circular on accelerating the implementation Plan for the Comprehensive Utilization of Industrial Resources, which also mentioned the standardized management of the comprehensive utilization of renewable resources in the waste power battery and waste mobile phone industry, and made separate instructions for improving the recycling system of waste power batteries. In addition, on January 12, improving the recycling system of waste power batteries was also emphasized.

In addition, at the press conference on the development of automobile industry and agriculture held by the Ministry of Industry and Information Technology in 2021, Guo Shougang, deputy director of the first Department of equipment Industry of the Ministry of Industry and Information Technology, also mentioned the need to strengthen communication and coordination with provinces and cities such as Qinghai, Sichuan, and Jiangxi to speed up the development of domestic lithium resources.

From the above, it is not difficult to see that the current development of lithium resources has risen to the national level. In the case of high lithium prices, many enterprises have also laid out lithium ore-related resources. On the evening of February 27th, Yahua Group announced that its wholly-owned subsidiary, Yahua International Investment and Development Co., Ltd., intends to subscribe for 3.7 million shares of Australian ABY at a price of A $0.75 per share. In addition, the two sides also signed an "off-take and sales agreement", according to which ABY has a 12-month contract to supply no less than 120000 tons of lithium concentrate to Yahhua Group. "View details

On the other hand, China Mineral Resources announced on the evening of February 25 that in order to give full play to the company's technical advantages in lithium ore reserves and lithium salt smelting and processing, the company, through its wholly owned company Chunpeng Lithium Industry, invested a total of about 1 billion yuan in Xinyu City, Jiangxi Province. build a project with an annual output of 35000 tons of high-purity lithium salt. The announcement shows that Chunpeng Lithium Industry produces 35000 tons of high-purity lithium salt annually. The main products of the project are battery-grade lithium carbonate and battery-grade lithium hydroxide, while the by-products are anhydrous sodium sulfate. The project construction period is about 12 months.

According to the spot price of SMM, as of Feb. 28, the average spot price of domestic battery-grade lithium carbonate has risen to 468000 yuan / ton, up 190000 yuan / ton from the beginning of the year, or 68.35%.

"Click to order to view the spot historical price of SMM new energy products.

The price of battery-grade lithium hydroxide is not to be lagged behind. As of February 28, the average spot price of domestic battery-grade lithium hydroxide rose to 419500 yuan / ton, up 197000 yuan / ton from the beginning of the year, an increase of 88.54%.

However, compared with the sharp rise in lithium carbonate prices before, recently, with varying degrees of overhaul and production reduction in the downstream lithium iron phosphate plate, enterprises' enthusiasm for purchasing lithium carbonate has declined; in addition, battery and material enterprises under the pressure of a surge in costs caused by the high-speed uplink of lithium prices, some enterprises take the strategy of "abandoning and buying" more than 470000 yuan / ton of lithium carbonate, and the short-term upstream and downstream games are heating up. Under the combined influence of a series of factors, the price increase of lithium carbonate has slowed significantly recently, but SMM believes that with the beginning of March, companies downstream of the head gradually begin to make monthly orders, and lithium carbonate prices are expected to rise slightly in the future. "View details

Guojin Securities previously pointed out that there is still a gap between supply and demand for lithium mines in 2022 and 2023, which will be greatly alleviated in 2024 and 2025, and the sustainability of this round of mismatch between supply and demand will exceed expectations, and continue to be optimistic about investment opportunities in the lithium sector.

Galaxy Securities said that in the case of continuous hot terminal demand downstream, lithium resources in the upper reaches of the industrial chain remain high, and lithium salt prices continue to rise to break through the 400000 yuan / ton mark. Global lithium battery leaders revealed that the shortage of lithium supply could not be solved in the short term and the global lithium resources leader raised the global lithium demand to 1.5 million tons of LCE in 2025, which to some extent alleviated the market concern about the sustainability of the lithium industry.

At the online live conference hosted by SMM, Liu Xiaoyi, senior analyst of SMM new energy industry, analyzed and prospected the supply and demand pattern of China's lithium market in the first quarter of 2022. She believes that from 2021 to 2022, driven by the slow putting into production of lithium mines and the high growth rate of demand in the new energy market, the prices of lithium carbonate and lithium hydroxide will rise all the way; followed by the successive commissioning of overseas mines, downstream demand will be met, and the price of lithium salt will be slightly adjusted.