[2020.07.02 Morning meeting Summary of Cobalt-Lithium New Energy] the gradual warming of export orders for ternary high-nickel batteries has a limited impact on the price of cobalt-lithium raw materials.

SMM, July 2:

Battery terminal market:

In terms of the power market, the European car market has recovered one after another, and export orders for high-nickel ternary batteries from domestic power battery factories have begun to increase. The energy storage market is still hot, and the demand for iron-lithium batteries in some head battery factories continues to rise. In addition, the small power market continues to increase, and more domestic battery factories turn to the electric two-wheeler market. Although orders have increased, the price of ternary batteries continues to fall.

Price of upstream raw materials:

Cobalt: the shipping willingness of multi-party electrolytic cobalt suppliers is enhanced, the demand continues to be depressed, and the price of electrolytic cobalt is weak. this week, the battery factory is mainly purchasing cathode materials, locking the price of cobalt tetroxide and other raw materials, and the cobalt salt market is relatively light. It is understood that the transaction price of cobalt tetroxide has dropped significantly compared with June, and some manufacturers have lowered their quotations to 17.3-175000 yuan / ton, the psychological price of demand quotes has reached less than 170000 yuan / ton, the price of cobalt raw materials has gone down, and the transaction price of cobalt tetroxide may still have a little room to fall.

Lithium: a large factory in Qinghai is willing to raise prices obviously, mainly because the market of lithium iron phosphate recovered obviously in the second quarter, and the price difference between electric carbon and industrial carbon has been maintained for a long time, the procurement demand of deep processing enterprises has increased, and the seller is willing to raise the price in good condition. However, at present, the overall demand in the middle market, especially the demand for low and medium nickel ternary materials, is slow, the terminal continues to transmit the pressure of cost reduction upward, the buyer buys on demand under the guidance of cost, and there is still obvious inventory pressure in the mainstream enterprises in the superimposed market. Price correction is difficult.

Positive materials and precursors: recently, the trading volume of ternary precursors and ternary materials has increased, due to the continuous upside-down prices of precursors, the decline in the price of raw materials basically does not affect the price of precursors, and the market price is relatively strong. the price of ternary materials remains basically unchanged. In terms of iron and lithium, energy storage orders continued to increase in July, and the demand for iron and lithium in the superimposed power market also increased slightly, but the market is still in oversupply, and it is difficult for iron and lithium prices to rise. Demand in India, a major overseas export country, did not recover due to epidemic and political reasons, domestic small power market demand rose slightly, and orders for lithium manganate increased slightly in July compared with June.

Nickel: at the beginning of the month, it is the downstream purchasing node of battery-grade nickel sulfate, and it is expected that the downstream demand in July is still weak, even at the purchasing node, the willingness of the nickel sulfate factory to raise the price is not strong; in the short term, the price of battery-grade nickel sulfate is mainly affected by the nickel price. At present, the mainstream transaction price of battery-grade nickel sulfate (crystal; 30-day account period) is 2.27-22800 yuan / ton.

News:

1. [10.8 billion yuan! Recently, the Ministry of Finance issued a notice on issuing a fund budget for energy conservation and emission reduction subsidies for 2020, which includes the settlement of subsidies for the promotion and application of new energy vehicles in provinces and cities in 2015 and 2018 and the advance allocation of subsidies for the promotion and application of new energy vehicles. According to the notice, the subsidies for new energy vehicles in 2015 and previous years totaled 127.22 million yuan, the subsidies for new energy vehicles totaled 6.8202 billion yuan, the subsidies for new energy vehicles totaled 980.78 million yuan in 2018, and 2.83869 billion yuan was earmarked in advance for new energy vehicles in 2010. a total of 10.767 billion yuan in subsidies for new energy vehicles. A total of 907132 new energy vehicles have been approved for promotion this time, of which Anhui is the region with the largest number of new energy vehicles, followed by Shenzhen, Shaanxi, Shanghai and Beijing, and BYD is the enterprise with the largest number of new energy vehicles. followed by BAIC, Geely, Jianghuai and SAIC.

2. [Tesla's share price rose more than 4000% on the 10th anniversary of its listing with a market capitalization of more than $200 billion]. According to foreign media reports, as of the close of US stocks on Tuesday, local time, Tesla's share price closed at a record high of US $1079.81, bringing its market capitalization to more than $200 billion for the first time. This makes Tesla overtake Toyota to become the world's largest carmaker by market capitalization.

3. [global New Energy vehicle list in May: Model 3 sold 20, 000 vehicles, with China contributing more than half of the market] according to EVsales, global sales of new energy passenger vehicles reached 145000 in May, up 31.1% from the previous month, down 19.3% from the same period last year, and the decline has been reduced. Tesla Model 3 has global sales of 20, 000 vehicles and its Chinese market accounts for 53.2 per cent. So far, Tesla's cumulative global sales of the Model 3 have exceeded 100000, making it the only model so far this year that has sold more than 100000.

SMM battery materials research team

Qin Jingjing 021 Murray 51666828

Mei Wang Qin 021 Mui 51666759

Huo Yuan 021 Murray 51666898