SHANGHAI, Feb 28 (SMM) –
Battery and end market:
The sales of new energy passenger vehicles with compulsory traffic insurance were 313,000 units in January 2022, a year-on-year increase of 114%. The sales of both traditional car makers and NEV start-ups increased significantly, which has further diversified market supply but also intensified market competition. Six out of the top ten NEV models came from BYD. Since its debut, BYD Dolphin has become very popular with young people in the car market with sales prices around 100,000 yuan. The sales of new brand Chery QQ Ice Cream were 8,000 units in January, an increase of 85% month-on-month. Similar to Hongguang MINI, it remains to be seen whether Chery QQ Ice Cream will become a sought-after brand in the A00 market in the future.
Upstream raw material prices:
Cobalt
Refined cobalt and intermediate products: Refined cobalt prices rose sharply last week, even as the demand was not very strong. Supply concerns spiked amid tight refined cobalt inventory and extended shipping period of cobalt intermediate products, lifting market prices. Driven by rising prices, some large refined cobalt producers have begun to resume their production. The prices of cobalt intermediate products were still in an upward trajectory last week as the shipping issues remained unsolved and as Glencore did not sign long-term orders in the first half of the year. Rising overseas prices also contributed to the price increase.
Cobalt salts: Cobalt sulphate prices went up last week. Cobalt intermediate products were in short supply, and the profits of cobalt produced with recycled scrap were extremely low due to rising lithium prices, forcing cobalt sulphate plants to reduce their production. Many large downstream producers became more active in making inquiries and purchases near the end of the month, also pushing up the prices. Tricobalt tetraoxide prices rose slightly last week. Rising cobalt chloride prices provided solid cost support. Mainstream downstream producers became more willing to purchase at the end of the month. Tricobalt tetraoxide prices will climb further along with rising costs.
Lithium
Lithium carbonate: The price increase of lithium carbonate slowed down last week. In February, the output of domestic lithium carbonate enterprises was still under the influence of overhaul and resource shortages. The purchasing enthusiasm of LFP plants declined due to output cuts and maintenance from February to March. Under the pressure of surging costs caused by the rapid rise in lithium prices, some battery and battery material companies refrained from buying lithium carbonate at above 470,000 yuan/mt. The tug of war between sellers and buyers heated up. Mainstream downstream producers showed limited buying interest. Some small orders were traded at above 470,000 yuan/mt. It is expected that the prices will continue to rise slightly as the major downstream enterprises begin to place monthly orders in early March.
Lithium hydroxide: The prices of lithium hydroxide rose sharply last week. The demand for high-nickel materials from domestic battery makers rose slightly. High-nickel cathode matieral enterprises are expected to increase their production slightly in March-April, while mainstream lithium salt plants will undertake maintenance , which will widen the supply gap. The rush by downstream producers to stock up boosted the prices. As the mainstream producers have strong pricing power and the market is in short supply, the prices of lithium hydroxide have quickly caught up with the prices of lithium hydroxide carbonate, and the price difference between the two narrowed significantly.
Cathode active material and precursor
LFP: LFP prices rose last week, but the upward momentum was diminished by the slowdown in lithium salt price hikes. Lithium salt prices remained high amid tight supply. The downstream purchasing enthusiasm declined at the current high raw material prices, slowing down the increase in LFP prices . LFP prices are likely to rise slightly along with rising lithium salt prices.
LMO: LMO prices rose recently. Rising lithium salt prices suppressed purchases by most LMO plants and encouraged LMO plants to raise quotations. Rising lithium salt prices affected the production and sales of LMO plants, who delivered orders in accordance with supply contracts and adjusted their selling prices based on the changes in raw material prices. It is expected that LMO prices will continue to rise along with lithium salt prices.
News
MIIT: The total output value of China’s lithium battery industry exceeded 600 billion yuan in 2021
According to the Ministry of Industry and Information Technology, China’s lithium-ion battery output totalled 324GWh in 2021, a year-on-year increase of 106%. Among them, the output of consumer lithium battery, power lithium battery and energy storage lithium battery stood at 72GWh, 220GWh and 32GWh respectively, up 18%, 165%, and 146% respectively on a year-on-year basis. The output of the four key materials for lithium batteries grew rapidly. According to estimates by research institutions, the growth rate of cathode materials, battery separators and electrolytes was close to 100%. The total output value of the lithium battery industry exceeded 600 billion yuan.
Jinyuan Corporation signed a strategic partnership with Jinzang Membrane Environmental Protection in the field of lithium extraction technology
Jinyuan Corporation announced that it has signed a Cooperation Framework Agreement with Jinzang Membrane Environmental Protection. The two parties will establish an in-depth strategic partnership in the field of lithium extraction technology. They will carry out joint research on key technologies and equipment in the extraction of lithium from salt lakes and promote the implementation of relevant achievements. They will also carry out joint research on key technologies and equipment in the fields of high-efficiency removal of magnesium from brine from salt lakes, extraction of potassium from brine, extraction of boron from brine, and extraction of rubidium and cesium from brine.
Suntar Environmental Technology signed a 210 million yuan battery-grade lithium carbonate project EPC general contract
Suntar Environmental Technology announced that it has signed the 5000 mt/year battery-grade lithium carbonate project EPC general contract with Jinkunlun Lithium Industry Co., Ltd., with the contract value at 210 million yuan. The contract will enrich the application scenarios of the company's salt lake lithium extraction technology in the field of lithium carbonate.
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