Lithium Battery concept stocks strongly go higher Lithium Battery where to go in the Future?

On March 17, lithium battery concept stocks were active. After the opening shock fell, the lithium battery concept rebounded rapidly, rising as high as 1.7% at one point, reaching as high as 2050.8 yuan / ton, and closing at 2046.44 yuan / ton.

Among them, Koda Manufacturing reopened after a limit and rose again, and a number of enterprises, such as Zhongli Group, Shida Shenghua, Tianzhi Materials, Mindong Electric Power and Polyfluoroduo, blocked the trading limit, and enterprises including Tianhua Super Clean, Xinwangda, Yongxing Materials and Tianqi Lithium Industry rose more than 7%.

Earlier, EVTank, a research institution, and China Battery Industry Research Institute jointly issued the White Paper on the Development of China's New Energy vehicle Industry (2021). According to the white paper, sales of new energy vehicles rose 49.8 percent year-on-year to 3.311 million in 2020. The white paper predicts that global sales of new energy vehicles will reach 16.4 million in 2025, with an overall penetration rate of more than 20 per cent. In terms of power batteries, white paper statistics show that the global shipments of power batteries for new energy vehicles will reach 158.2 GWH in 2020, and it is expected that the demand for power batteries will reach 919.4GWh by 2025.

Thus it can be seen that the market of new energy vehicles and power batteries is improving. Benefiting from the monthly growth of sales of new energy vehicles, the installed capacity of lithium batteries has increased significantly, and the demand for lithium carbonate and battery-grade lithium hydroxide is also rising. According to the SMM quotation, the price of lithium products needed in lithium batteries has continued to rise since the low point in 2020. As of March 17, the average price of battery-grade lithium carbonate in China was 83500 yuan / ton, up 110% from the low point of August 20, 2020. The average price of industrial grade lithium carbonate was 80500 yuan / ton, up 135% from July 7, 2020. The average price of battery-grade lithium hydroxide was 67000 yuan / ton, up 40% from December 22, 2020. The average price of industrial-grade lithium hydroxide was 65000 yuan / ton, up 54% from December 25, 2020.

"Click to view the spot historical price of SMM lithium products.

According to SMM research, in view of the gradual decline in domestic lithium carbonate trading volume, the downstream stock of raw materials has been completed to April-May, the wait-and-see mood is obvious, superimposed mica and salt lake production began to pick up, prices began to stabilize, the short-term price correction caused by stable supply increment due to demand cannot be ruled out. In February, the demand side of lithium hydroxide increased slightly, and some of the new production capacity of high nickel gradually reduced; the inventory consumption on the supply side was obvious around the Spring Festival, and the domestic demand for overseas orders surged sharply, and prices are expected to rise slightly.

In view of the fact that at the industry level, trams in China and Europe are growing faster than expected, lithium application scenarios are gradually expanding, and improvements in energy storage, power tools and two-wheelers have further increased lithium demand, so some institutions expect the global lithium industry market to grow at a compound annual growth rate of 25 per cent from 330000 tons of LEC in 2020 to 1.084 million tons of LCE, in 2025 and usher in a new demand cycle.

To pay attention to the future trend of lithium power, please participate in the 6th China International Nickel, Cobalt and Lithium Summit Forum. SMM will invite industry experts, scholars and enterprise celebrities to make a comprehensive interpretation of the above important topics that are closely related to the development of the industry and enterprises.