On the evening of June 28th, Tianqi (002009) announced that it planned to invest 5 billion yuan to build a production project with an annual production capacity of 30,000 tons of ternary precursors and 12000 tons of battery-grade lithium carbonate.
According to the announcement, Tianqi held the 34th (interim) meeting of the Seventh Board of Directors on June 28, 2021, and examined and adopted the "proposal on signing a Project contract with the Management Committee of Longnan Economic and technological Development Zone." It is agreed that the company and the management committee of Longnan Economic and technological Development Zone in Ganzhou City, Jiangxi Province (hereinafter referred to as "Longnan Economic and technological Development Zone") signed the contract for Investment in decommissioned Power Battery, Lithium Battery ladder Utilization and Ternary precursor production Project. The company and its subsidiaries plan to purchase about 397.34 mu of land in Longnan Economic Development Zone, and the planned investment will be dominated by waste lithium battery raw materials in the next five years. To form a production project with an annual output of 30, 000 tons of ternary precursors and 12000 tons of battery-grade lithium carbonate.
The main body of the project is Jiangxi Tianqi Jintai Pavilion Cobalt Co., Ltd. (hereinafter referred to as "Jintai Pavilion"), a subsidiary of Tianqi shares, or its project company set up in Longnan, with a total investment of about 5 billion yuan, of which 2.5 billion yuan is invested in fixed assets. The project is divided into two phases, with the first phase of planned land of 247.34 mu, which is expected to start construction in the fourth quarter of 2021 and be completed and put into production in the fourth quarter of 2023; the second phase of planned land is expected to start construction in the fourth quarter of 2022, and is expected to be completed and put into production in the fourth quarter of 2024.
Tianqi said that the investment project uses waste lithium batteries as raw materials to realize the chemical recovery of nickel, cobalt, manganese and lithium resources and the manufacture of ternary precursor materials. the existing element extraction business of Jintai Pavilion and Tianqi Lithium further extends to the downstream battery material manufacturing business, and finally forms a complete industry chain of waste battery resource utilization of "battery recycling-element extraction-material manufacturing".
At present, with the rapid development of the new energy vehicle industry and the rapid growth of the market capacity of new energy batteries, the lithium battery industry has ushered in a historical opportunity for vigorous development. It is expected that in the next 5-10 years, the market demand for ternary precursors, lithium carbonate and other lithium battery materials as well as waste lithium battery recycling market is growing at a double speed.
Public data show that the automotive aftermarket industry is one of the key layout directions of Tianqi shares in recent years, with scrapped automobile recycling and disassembly, power battery recycling and remanufacturing as the core layout. the company has Ningbo Recycling, O'Reid, Jintai Pavilion, Tianqi Lithium and other core subsidiaries, covering scrapped automobile recycling and disassembly, automotive core parts remanufacturing and power battery recycling.
Among them, Tianqi core subsidiaries Jintai Pavilion and Tianqi Lithium focus on the recycling of waste lithium batteries, with the realization of lithium-ion battery all metal extraction process, its production process is mature and has strong profitability. The company's main customers for power battery recycling include new energy vehicle battery manufacturers, magnetic material manufacturers, etc., including Shandong Guocera, Guangdong Dow, Hengdian Dongji, Hunan Zhongwei and so on.
On the evening of June 23, Tianqi shares released a forecast of its results for the first half of 2021, with an estimated net profit of 75 million yuan to 85 million yuan in the first half, an increase of 562.02% Kui 650.29% over the same period last year. For the reasons for the substantial increase in performance, Tianqi shares said that Jintai Pavilion was incorporated into the scope of the company's merger in the second half of 2020. Benefiting from the development of the domestic new energy vehicle industry, the strong demand for power battery materials drives up the prices of cobalt, lithium and other metals, increasing the company's gross profit space. In addition, in the first half of 2021, Jintai Pavilion drilling Co., Ltd. and Ganzhou Tianqi Lithium Industrial Co., Ltd. continued to optimize product structure, expand production capacity, reduce unit consumption costs, significantly increase product sales and further increase the company's profits.
