Lithium resources lead the rise of new energy plate industry leading the depth of the layout of the upstream price rise to how long?

On Wednesday (28th) early trading, A-share lithium battery plate opened sharply higher, of which lithium resources-related stocks are relatively strong, Tianqi lithium industry once rose by the daily limit, Rongjie shares, Yahua Group and other shares also rose at the top.

On the face of the news, Ningde Times released its 2020 annual report last night, while announcing that it intends to invest in high-quality listed companies in the industrial chain at home and abroad in the form of securities investment around the main industry, with a total investment of no more than 19 billion yuan (excluding capital) RMB or equivalent currency.

The global leading industrial chain may become an important target to reinvest lithium resources.

It is worth noting that on the 10th of this month, Ningde era and Luoyang Molybdenum Industry reached omni-directional strategic cooperation in the field of new energy metal resources. Chairman Zeng Yuqun said at the time that the lithium industry had ushered in the era of TWh, and the key condition to ensure high-quality delivery was the stable and compliant supply of raw materials.

In fact, in order to ensure a stable supply of raw materials, Ningde era has formed a closed-loop industrial map of "copper, cobalt, lithium, nickel resources-lithium carbonate / lithium hydroxide-cathode materials (including precursors)-recycling". Among them, lithium-related raw materials have become one of the key links.

In terms of lithium carbonate / lithium hydroxide, Ningde Times holds a 15% stake in Tianyi Lithium Industry. In November 2019, the two sides signed a cooperation agreement that Ningde Times will give priority to purchasing lithium carbonate and lithium hydroxide products from Tianyi Lithium Industry in the next five years. In December 2020, Tianyi lithium industry has started to produce 25000 tons of battery-grade lithium hydroxide, is expected to be completed and put into production by the end of 2021, and plans to build a 100000-ton battery-grade lithium hydroxide production line by 2024.

How long will the pulling effect of power batteries keep the price of lithium resources rising?

It is worth mentioning that the upstream raw materials of lithium batteries have continued to rise since the beginning of the year. Data show that as of April 8, the mainstream domestic price of battery-grade lithium carbonate was 88000-95000 yuan / ton, up 6000-10, 000 yuan / ton within the month, and 71.2% higher than at the beginning of the year. Spot prices have doubled in four months, almost once every other day.

The Li Chao team of CITIC Securities reported on April 15 that the price-pulling effect of power lithium on battery metal continues, the downstream demand for battery metal is growing without worry, and the weakening demand for consumer lithium may suppress metal prices to a certain extent, but under the tight supply of lithium concentrate upstream, the certainty of lithium price rise is still high.

Guangfa Securities Juguoxian report on March 3 also believes that the technology path switching in the lithium-ion battery system has little impact on lithium demand, whether it is ternary battery, lithium iron phosphate battery, solid-state lithium battery or super capacitor dry battery. Lithium is needed, but the demand for different lithium products varies.

The short-term ternary development trend of high nickel will lead to the rapid growth of lithium hydroxide demand; in the long run, if the energy storage field rises and the application of lithium iron phosphate battery is enhanced, lithium carbonate is still the main demand; the metal lithium negative electrode of solid-state lithium battery and the pre-lithium of super capacitor dry battery will increase the demand of metal lithium in the future.

However, Yang Hongxin, chairman and CEO of Honeycomb Energy, believes that the rising price of raw materials for power batteries will not last forever. "at least the price of nickel has come down, and the price of lithium is still rising, but we expect the price of battery raw materials to stabilize by the end of this year. We can't keep going up like this."