[summary of SMM Cobalt Lithium Morning meeting] demand for iron-lithium batteries continues to increase. Imports of cobalt raw materials increased in October.

SMM, November 26th:

Battery terminal market:

From the point of view of the terminal market, the second overseas epidemic has hit, and the export speed of consumer goods has slowed down. at present, 3C products have little impact, while the demand for other consumer products has slowed down, which has a greater impact on the orders of ternary and lithium manganate batteries. In terms of batteries, the demand for lithium batteries in the shipbuilding industry has gradually increased recently. The carrying capacity of a cruise ship is basically 1-3 MWH, which is much higher than that of an electric vehicle. With the increase of ship lithium permeability, the increase of demand for lithium batteries is more obvious. At present, ships basically use iron-lithium batteries, and the demand for iron-lithium batteries is further increased in the future because of its safety, high navigation life, long cycle life and low cost.

Price of upstream raw materials:

Cobalt: the import of cobalt raw materials increased in October, and cobalt intermediate products imported 9300 tons of metal tons, an increase of 13% over the same period last year. The average import price of cobalt intermediate products is higher, and the high-price inventory of raw materials and finished products in smelters is gradually increasing. This week's market cobalt sulfate 54000 yuan / ton transaction, cobalt chloride transaction is relatively light, downstream large factory stock is basically completed. The quotations of electrolytic cobalt, cobalt powder and cobalt carbonate have been lowered, and the trading volume has gradually increased. The import volume of cobalt intermediate products and unwrought cobalt increased, or weakened the confidence of market prices, but the cost supported the bottom of cobalt prices.

Lithium: lithium carbonate transactions are sporadic this week, and there is almost no supply of low-cost electric carbon. Imports of lithium carbonate rose in October compared with the same period last year, and the supply tension eased somewhat compared with the previous month. High prices are expected to stabilize temporarily this week, and low prices are expected to be raised to 43000 yuan / ton. Lithium hydroxide trading situation is not good, demand is rising year-on-year, but the domestic supply-side accumulation is serious, cost support prices are temporarily stable, low prices are expected to fall in the future, leading to further polarization.

Cathode materials and precursors: in terms of ternary materials and precursors, the prices of cobalt and nickel salts have risen slightly recently. In the first half of the week, the market talked more about next month's orders, but the actual transaction was not much. at present, the prices of conventional 5-series products are still low, and the prices of 6-series and 8-series products basically rise with the price of raw materials, and it is expected that there will be a large number of transactions in the second half of the week or next week. In terms of lithium manganate, both lithium carbonate and manganese dioxide have risen recently, and the cost of lithium manganate has increased by nearly 2000 yuan / ton. due to the small cost space of lithium manganate, some enterprises have quoted an increase of 1000-2000 yuan / ton, which still takes time to transmit downstream.

Nickel: this week, Shanghai nickel rose 121500 / ton due to macro-favorable, battery-grade nickel sulfate spot quotation 28000 / ton, the mainstream market transaction price can be slightly raised to 2.75-27800 / ton (crystal; one-month account period). The market turnover is light this week, and in the near future, we will mainly talk about the raw materials of nickel sulfate and the long list of battery-grade nickel sulfate next year.

News:

1. [EU plans to achieve power battery self-sufficiency by 2025] European Commission Vice President Maros Sefkovic (Maros Sefcovic) said on Tuesday that by 2025, the EU could produce enough batteries to power its fast-growing electric vehicles without having to rely on imported batteries.

2. [LG Chemical signed a contract with Tesla to supply NCM batteries for Model Y] recently, LG Chemical and Tesla signed a contract to supply NCM (nickel, cobalt and manganese) batteries for the Model Y model produced by Tesla's Shanghai factory. Sales under the contract are expected to be $2.7 billion a year, and mass production of batteries will begin in Shanghai in the first quarter of 2021.

3. [Shanghai will continue to grant free special licenses for new energy vehicles by the end of 2022] at present, Shanghai is studying and formulating local incentive measures. Shanghai issued the measures for encouraging the purchase and use of New Energy vehicles in 2018, which is valid from February 1, 2018 to December 31, 2020. According to the national policy requirements for overall support for new energy vehicles by the end of 2022, Shanghai will continue to grant free special license plates for new energy vehicles by the end of 2022. At present, specific policies and regulations are still in the process of formulation and will be announced to the public in a timely manner.

SMM battery materials research team

Huo Yuan 021-51666898

Mei Wangqin 021-51666759

Liu Xiaoyi 021-51666716

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