[summary of SMM Morning meeting on Cobalt and Lithium] the policy is good for the strong price of cobalt and lithium in the new energy industry.

SMM, Nov. 5:

Battery terminal market:

From the perspective of the power market, the General Office of the State Council recently issued a notice on the Development Plan of the New Energy vehicle Industry (2021-2035), some of which have been changed from the "draft for soliciting opinions" in December 19, such as the permeability of new energy vehicles has been adjusted to 20%. The energy consumption of 100 kilometers is increased by 1 degree. This policy provides more reasonable regulations on the permeability and power consumption requirements of new energy vehicles in the future, as well as strengthening the construction of recharging services, power battery recycling system and national supervision, etc. at the same time, it also has a positive impact on cobalt and lithium in the next five years and long-term demand.

Price of upstream raw materials:

Cobalt: cobalt salt offer is still strong this week, a few transaction prices slightly increased by 1000-2000 yuan / ton, most of the orders are still being discussed, the trading volume is expected to rise; cobalt tetroxide quotation is strong, the mainstream transaction price is still around 210000 yuan / ton. Electrolytic cobalt this week a few smelters lower quotations, traders shipping prices down, demand downturn, do not rule out individual suppliers sell goods at low prices, but the market as a whole low-price inventory reduction, the price is expected to stop falling.

Lithium: electric carbon transactions are sporadic this week, the mainstream transaction price is about 4-43000 yuan / ton, the price has risen 3000 yuan / ton in the past two months, the upstream and downstream game is expected to be stable in the short term. Industrial carbon quotation has been raised this week, and the low transaction price is expected to continue to rise to 36000 yuan / ton. Lithium hydroxide was traded sporadically this week, and the price remained stable for the time being.

Cathode materials and precursors: in terms of ternary materials and precursors, the price of cobalt salt has an upward trend recently, and the price of nickel salt is relatively strong, but it is difficult to accept the price increase downstream, and the price of the material factory is under pressure. In terms of lithium manganate and lithium iron phosphate, the price of lithium salt has increased, and the downstream demand is better, but battery companies have depressed prices for a long time, and the market for lithium manganate and lithium iron has been forced to reduce prices in order to maintain stable customers, resulting in increased cost pressure.

Nickel: this week, the price of battery-grade nickel sulfate continued to be 2.75-28000 / ton last week, but the market mainstream transaction price has risen to around 27500 / ton, this week is still in the regular procurement period, but the market turnover is still light.

News:

1. [it is rumored that Tesla will hold a conference call with the Thai Ministry of Industry and economy to push forward the expansion plan] it is reported that Tesla will hold a conference call with the Thai Ministry of Industry and economy. It is reported that the Thai Investment Promotion Committee (BOI) is expected to draw up proposals for the renewal of the second round of electric vehicle investment plan in early November 2020. The plan will provide an eight-year corporate tax credit for the promotion of electric vehicles.

2. [LG Chemical will expand the cylindrical battery production capacity of the Nanjing factory with another US $500m] it is understood that recently, LG Chemical Co., Ltd. signed an agreement with Nanjing Economic Development District, LG Chemical will invest another 500 million US dollars to build cylindrical car power batteries in Nanjing Economic Development District. In addition to supplying Tesla, the products are also expected to supply BMW.

3. [Guangzhou Automobile Honda New Energy vehicle (annual production capacity of 120000 vehicles) the second public announcement of the environmental impact of the construction project (released on the official website of Guangzhou Automobile Honda)] according to the Environmental impact Assessment Law of the people's Republic of China, the regulations on Environmental Protection Administration of Construction projects (decree No. 682of the State Council) and other relevant laws and regulations, To carry out the environmental impact assessment of the construction project of GAC-Honda new energy vehicles (with an annual production capacity of 120000 vehicles). In accordance with the relevant requirements of the measures for Public participation in Environmental impact Assessment (decree No. 4 of the Ministry of Ecology and Environment) (2018), the public participation in the environmental impact assessment of this project is announced for the second time to solicit public opinions.

SMM battery materials research team

Huo Yuan 021-51666898

Mei Wangqin 021-51666759

Liu Xiaoyi 021-51666716

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