Nord shares plan to raise 2.288 billion to expand production. These companies are also expanding the production of lithium copper foil.

On the evening of June 7th, Nord shares (600110) disclosed the plan to issue no more than 340 million shares to Bangmin Holdings, Hongyuan New Materials and Bangmin New Materials, raising no more than 2.288 billion yuan. Used for lithium battery electrolytic copper foil project, power battery electrolytic copper foil project and replenishment of working capital and repayment of bank loans.

1.75 billion is used to expand the production of lithium copper foil.

The fixed increase plan shows that the Qinghai high-performance extremely thin lithium-ion battery electrolytic copper foil project plans to build a 15000-ton electrolytic copper foil production line for high-performance ultra-thin lithium-ion batteries. The total investment of the project is 1.252 billion yuan, which mainly includes construction cost, equipment purchase cost, installation cost and other expenses, preparatory fee and bottom working capital, of which 950 million yuan will be invested with the raised funds.

The project of electrolytic copper foil for power battery in Huizhou plans to build a project of 12000 tons of electrolytic copper foil for power battery. The total investment of the project plan is 1.026 billion yuan, including construction project cost, equipment purchase cost, installation project cost and other expenses, preparation fee and bottom working capital, of which 800 million yuan is planned to be used to raise funds.

In addition, the company plans to raise 538 million yuan to replenish working capital and repay bank loans to meet the liquidity needs of the company's daily operation and future business scale growth.

Nord said that through the implementation of the above projects, the company can further expand the production capacity of high-performance extremely thin lithium copper foil products, further enhance the company's competitiveness in the lithium copper foil market, and expand market share. After the completion of the issue, the company's net assets and total assets will be greatly improved, and the asset-liability ratio will decrease.

Market penetration of ultra-thin lithium copper foil accelerates

According to public data, Nuode copper foil products are mainly copper foil for power lithium battery, which is used in the production of power lithium battery, and has become a leading enterprise in the domestic power lithium battery copper foil industry. it is one of the few enterprises that can produce ≤ 6 μ m very thin copper foil in large quantities.

In terms of product sales, Nord shares and Ningde Times (CATL), LG Chemistry, BYD, SKI, Guoxuan Hi-Tech, Yiwei Lithium Energy, Tianjin Lishen, AVIC Lithium Power and other major domestic and foreign power battery enterprises continue to have a stable cooperative relationship, constantly consolidate the market position in the field of lithium copper foil.

According to Nord shares, the development opportunity of the lithium battery market has attracted a lot of social capital, and a number of power battery companies have launched production expansion plans and entered the production expansion cycle. Among them, the company's customer Ningde Times, as a leading lithium battery enterprise, has been expanding its production capacity since it was listed. The announced investment budget for lithium battery-related capacity construction projects has exceeded 50 billion yuan. In 2020, targeted issuance raised 19.7 billion yuan, most of which are intended to be used for lithium-ion battery capacity construction projects. 2019 lithium-ion battery production capacity 53Gwhr; The company's customer BYD power battery capacity also continues to expand. From 2016 to the end of 2019, BYD power battery production capacity was 12GWh, 16GWh, 22GWh, 30GWH respectively, with a planned capacity of 65GWH in 2020; the company's customer Guoxuan Hi-Tech publicly issued convertible corporate bonds in 2019 to raise 1.85 billion yuan, of which 1.469 billion yuan was used for the power lithium battery expansion project.

Based on years of technology accumulation in the lithium copper foil industry, Nord shares have seized the opportunity of customer demand adjustment in recent years. The company actively adjusts the product structure according to the changes of customer demand, increases the production of 6 μ m copper foil, at the same time realizes the technological upgrade and product application of ≤ 6 μ m copper foil, and constantly promotes the company's leading position in the market in the same industry.

In terms of production capacity, by the end of 2020, Nord has a total production capacity of 43000 tons of copper foil, including 35000 tons of lithium foil. On January 22 this year, Nord also announced that Sun Huizhou Electronics plans to expand its annual production capacity of 12000 tons of high-end very thin lithium copper foil.

In addition, recently, EVTank, together with Yiwei Economic Research Institute and China Battery Industry Research Institute, jointly issued the "White Paper on the Development of China's Copper foil Industry (2021)". White paper statistics show that in 2020, Chinese lithium copper foil shipments reached 146000 tons, an increase of 17.7% over the same period last year, and Chinese lithium copper foil shipments accounted for nearly 35% of all electrolytic copper foil shipments.

From the perspective of enterprise competition, Longdian Huaxin ranked first with shipments of more than 23000 tons in 2020, with a market share of 16.0%, followed by Nord shares and Jiayuan Technology, with a market share of 13.0% and 10.1%, respectively.

For the development characteristics of the whole lithium copper foil industry in 2020, Wu Hui, general manager of the Research Department of Yiwei Economic Research Institute and president of China Battery Industry Research Institute, analyzed that it is mainly reflected in the following points: (1) due to the influence of the epidemic in 2020, resulting in the mismatch of supply and demand in the whole lithium copper foil industry, the superimposed copper price rose, and the processing fee of copper foil rebounded significantly, and the processing fee for 4.5 μ m high-end products was as high as 70,000 yuan / ton. (2) benefiting from the very definite demand for power batteries brought about by the industrialization of new energy vehicles, the capacity expansion rate of lithium copper foil is obviously accelerated, so that the supply of high-end cathode rollers imported from Japan is in short supply. some copper foil enterprises began to choose domestic equipment; (3) the pursuit of high energy density of downstream power batteries has led to the batch application of 4.5 μ m of extremely thin copper foil, and industry leaders including Jiayuan Technology and Nord have begun to supply 4.5 μ m of products in large quantities.

Tight balance between supply and demand promotes the expansion and acceleration of Lithium Copper foil

China Merchants Securities pointed out that judging by the capacity expansion, the global supply and demand of lithium copper foil still maintains a tight balance. Since last year, in addition to the electrolyte industry chain, upstream lithium and other raw materials, only the price of copper foil has increased. It is expected that the tight supply of copper foil in the middle reaches of the battery may be second only to the electrolyte industry chain.

Battery Network noted that in addition to Nord shares, a number of companies have invested in lithium copper foil since May:

In May, foreign media reported that SK Nexilis, a battery copper foil supplier owned by South Korea's SKC, had decided to build a plant with an annual capacity of 50, 000 tons in Europe, which had been approved by the board of directors, as well as another similar project in the United States. This will increase the annual production capacity of its battery copper foil from the current 43000 tons to 200000 tons.

LG Chemical said it would invest 40 billion won in Chinese copper foil maker Jiujiang Defu Technology Co., Ltd. to stabilize the supply of core battery materials, Yonhap news agency reported.

On May 17th, the groundbreaking ceremony of Nanjing Longxin Electronic Technology Co., Ltd., the East China headquarters of Longdian Huaxin Group with a total investment of 10 billion yuan, was held in Nanjing Lishui Industrial New City.

On May 20, Tongling Nonferrous has an annual production capacity of 20,000 tons of ultra-thin electronic copper foil for high-precision energy storage (Phase II).

On May 28th, Qujing Economic Development District and Hainan Zijing Investment Co., Ltd. held a signing ceremony of "annual output of 50, 000 tons of high-end lithium copper foil and supporting projects". The total investment of the project is expected to be about 3.5 billion yuan.