[hot stocks] Lithium iron phosphate assists the rapid rise of lithium battery plate for a long time against the rising tide!

SMM July 29th: in early trading today, the lithium battery plate rose sharply under the good news of lithium iron phosphate battery after falling for 3 consecutive days. As of press time, the lithium battery index rose by more than 5.8% at one point. More than 10 shares, including Jiangte Electric, Shi Da Shenghua, Xiangtan Dianhua and Ya Hua Group, rose by the daily limit, while Rongjie shares, Tianji shares and Tianqi Lithium Industry rose more than 8%, and the plate was happy.

On the news side, lithium iron phosphate batteries returned to the "throne", driving the price of phosphoric acid up by more than 40%. According to the statistics of relevant institutions, in the first half of this year, the production capacity of the newly launched lithium iron phosphate cathode material project in China has reached nearly 1.5 million tons, with a total investment of more than 40 billion yuan. In 2020, the shipment volume of lithium iron phosphate cathode material in China was 124000 tons, and in 2021, the shipment volume rose to nearly 175800 tons.

Some industry insiders commented that the current domestic investment in iron lithium is quite radical, far exceeding other links. According to analysts in the industry, this is mainly due to the fact that iron-lithium batteries have far more cost-effective and safety advantages than other batteries, resulting in a rapid increase in their permeability in the past year, while relatively extensive sources of materials and mature processes have also given opportunities for a large influx of capital.

On July 27th, Guoxuan Hi-Tech just disclosed that the company plans to invest 200000 tons of high-end cathode materials in Lujiang, while Fulin Seiko also said earlier that it expected to invest 4 billion yuan to build an annual production project of 250000 tons of lithium iron phosphate cathode materials. Recently, Fulin Seiko replied to an inquiry letter saying that there is a certain risk of overcapacity in the company's new capacity, but on the one hand, the company locates capacity expansion in high-pressure, solid-density lithium iron phosphate products with relatively moderate competition, on the other hand, by flexibly grasping the market supply and demand situation, timely start the construction of the remaining 190000 tons of capacity. To a certain extent, it can avoid the construction waste caused by the blind expansion of production capacity and the damage to the interests of listed companies.

Tuobang announced on July 28th that the company won the bid for China Mobile's centralized procurement project of lithium iron phosphate battery products for communications from 2021 to 2022, with a winning amount of about 175 million yuan.

In addition, many enterprises, such as Longbai Group, Xiangtan electrification and German Nano, have also invested in the construction of lithium iron phosphate production lines this year.

Some institutions pointed out that thanks to the "electrification" change of the automobile industry, the shipment of lithium iron phosphate could reach the order of one million tons in the future. On the supply side, phosphate rock / monoammonium phosphate has negative growth for five consecutive years, the overall supply of phosphoric acid is stable, the supply of phosphorus source is subject to policy inflexibility, and the improvement of capacity utilization needs to be completed through zombie capacity clearance. the gap between supply and demand or low inventory can be maintained at or above the annual level.

As of July 29th, according to the spot quotation of SMM, the price of power lithium iron phosphate was 52000 yuan / ton, an increase of 36.8% during the year.

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