Tianqi lithium industry post-holiday share price plunged twice! Two "bad attacks" refuted the rumors and the results came!

SMM, Feb. 8: on the first trading day after the festival, 120 billion lithium giant Tianqi Lithium Co., Ltd. was weighed down by all kinds of bad news, and finally closed down more than 6%. Today, after a series of clarifications, Tianqi Lithium still seems to have failed to save its share price. At one point, its shares fell more than 5.6% in intraday trading.

Looking back on the ups and downs of yesterday's news, first of all, there are rumors that the production of the Quinana project of Tianqi Lithium Industry in Australia has been postponed, which is also recognized as one of the reasons why Tianqi Lithium Industry's share price plummeted. After trading, Tianqi Lithium Industry also refuted the rumor, its relevant person in charge said that the Quinana project is currently in normal trial operation, the project side just opened the investor exchange meeting did not mention that the project will be postponed. Some remarks can be regarded as breaking the previous rumors.

In addition, at the investor exchange meeting at that time, Tianqi Lithium Industry also mentioned that the company's first phase of lithium hydroxide project in Quinana, Australia has been basically fully operational and has been put into trial operation. In the process of trial production, the company will carry out targeted rectification work in time according to the problems that arise, so that the project will gradually achieve a sustained and stable production state, and strive to reach the design capacity smoothly by the end of 2022.

At the same time, the main project of the company's Quinana II project in Australia has been basically completed, as the company's project team focuses on the commissioning, commissioning and capacity climbing of the first phase of the lithium hydroxide project, so the second phase of the project is currently in a state of suspended interpretation.

As for lithium hydroxide, according to SMM's previous research, on the supply side, lithium hydroxide manufacturers entered the maintenance period in January, the supply decreased significantly, while the production line is still in the climbing period, the supply increment is limited. At present, due to the continuing shortage of lithium carbonate, causticizing manufacturers lack of raw materials to maintain a low supply. SMM expects that the lithium hydroxide market supply will still be affected by maintenance in February, and lithium hydroxide production is expected to decrease by 9.6% month-on-month in February 2022. "View details

According to the spot price of SMM, today's quoted price of battery-grade lithium hydroxide successfully broke through the 300000 yuan / ton mark to 300000-309000 yuan / ton, with an average price of 304500 yuan / ton, an increase of 2% over yesterday.

"Click to view the spot historical price of SMM new energy products.

In addition, news recently passed by Chile to promote the nationalization of copper, lithium and other strategic assets may also have had an impact on Tianqi Lithium's share price. However, the person in charge of the Tianqi lithium industry clarified that the nationalization of Chilean lithium mines has not actually landed, and the company has already signed a contract with the local area and obtained the lithium resource quota before December 31, 2030. the quota will not be changed at present.

Once the Chilean lithium nationalization policy is implemented, the Chilean government also needs to give a specific plan on how to deal with locally acquired mining shares.

According to a report released by Tianqi Lithium Industry in May 2018, Corfo, an industrial development agency of the Chilean government, authorized an increase in the quota for Tianqi Lithium holding Company SQM Salar to extract lithium products from Salar de Atacama Salt Lake mining. Under the agreement, SQM Salar is given the right to develop, process and sell up to 349553 tons of lithium metal by December 31, 2030, equivalent to a total quota of 2.2 million tons of lithium carbonate, based on the previous quota of 64816 tons of lithium metal.

In addition to the above two major bad news, Tianqi lithium industry also revealed a good news. On the evening of February 7th, the company announced that its shareholding company, SESHoldingsPte.Ltd (referred to as "SES"), would soon be officially listed.

The announcement shows that Ivanhoe held an interim shareholders' meeting on February 1 to examine and approve the business merger with Tianqi Lithium Industry SES. Ivanhoe changed its name to "SESAICorporation". On February 3, Ivanhoe completed a private offering of common shares at a price of $10.00 per share, raising a total of about $275 million. On February 4, 2022, the Class A common shares and warrants of the merged company began trading on the New York Stock Exchange under the new ticker symbol "SES" and "SESWS", respectively.

As of the date of disclosure of the announcement, Tianqi Lithium holds 27.7679 million shares in SES, with a sales restriction period of 180 days from the date of its listing. The merger of SES and Ivanhoe in the business field will also lay a more solid foundation for Tianqi lithium industry's longer-term strategic planning and further accelerate the commercialization of lithium metal batteries.

It is worth mentioning that although the share price of Tianqi Lithium Industry is fluctuating, CITIC Securities is predicting that the price of lithium compounds exported from China to Japan and South Korea is expected to accelerate as the impact of long order pricing is eliminated in 22022. In view of the fact that imported low-cost lithium carbonate products may lead to high fluctuations in domestic lithium prices, CITIC Securities believes that, in view of the fact that imported low-cost lithium carbonate products may lead to high fluctuations in domestic lithium prices, Citic Securities believes that Integrated lithium producers will fully benefit from the advantages of guaranteed supply and low cost. Recommend Ganfeng Lithium Industry, Salt Lake shares, Shengxin Lithium Energy, and suggest to pay attention to Tianqi Lithium Industry and Yongxing Materials.