[Weekly Report on Cathode Materials] Lithium Carbonate Sector Sees a Merger and Acquisition Worth Over 10 Billion! CATL Increases Investment in LFP Projects

【Project】Additional 5 Billion Yuan Investment After 32 Billion Yuan! CATL Subsidiary Invests Again in Yichang, Hubei

According to the Three Gorges Daily, on January 12, the Yichang Municipal Government of Hubei province signed an agreement with Yichang Brunp Times New Energy Co., Ltd. in Foshan, Guangdong, marking the finalization of a 5 billion yuan investment in a 450,000 mt next-generation LFP project.

Battery Network learned that previously, CATL (300750), through its controlling subsidiary Brunp Recycling and its subsidiaries, invested 32 billion yuan in Yichang to establish the Brunp integrated industry chain park, which includes three sub-projects: Brunp Recycling, Brunp Yihua, and Brunp Times. This additional investment focuses on the NEV battery entire industry chain. Once completed and operational, the project is expected to produce 450,000 mt of next-generation LFP products annually.

It is reported that CATL's Brunp integrated new energy industry park centers on cathode materials for NEV power batteries, integrating multiple business segments such as "phosphate ore—raw material—precursor—cathode material—battery recycling," covering the entire battery life cycle. (Source: Battery 100 Forum - Battery Network)

【Highlight】China's Domestic Lithium Resource Output to Increase by Over 30% in 2024

On January 14, Xiong Zili, Director of the Geological Exploration Management Department of the Ministry of Natural Resources, stated at a routine press conference that in 2024, for the first time, a plan for the transfer of exploration rights will be issued to local governments, setting a minimum number of exploration rights transfers. Over 1,400 strategic mineral exploration blocks will be provided throughout the year, a record high in the past decade. The focus will be on minerals such as oil and gas, lithium, copper, gold, iron, coal, bauxite, and potash, with investments in provinces including Xinjiang, Gansu, Henan, Guangxi, Hubei, Inner Mongolia, Jiangxi, Hebei, Shandong, and Sichuan.

In 2024, China will achieve significant breakthroughs in strategic emerging industry minerals such as lithium, zirconium-hafnium, helium, and rare earths. China's lithium resources are diverse and abundant, with widespread distribution of salt lake, spodumene, and lepidolite types. A world-class spodumene lithium metallogenic belt was newly discovered in the West Kunlun-Songpan-Ganzi region, with an estimated resource potential of 30 million mt. Significant breakthroughs were also made in Inner Mongolia, Jiangxi, Hunan, Sichuan, Xinjiang, and Tibet. Sichuan's Yajiang Muerong exploration identified Asia's largest pegmatite-type single lithium mine, while the Qinghai-Tibet region became the world's third-largest salt lake lithium resource base. Newly added lepidolite lithium resources exceeded 10 million mt. In 2024, China's domestic lithium resource output is expected to increase by over 30%, becoming a "stabilizer" for international lithium ore market prices. (Source: Battery 100 Forum - Battery Network)

【Update】Annual Production and Sales of 40,000 mt! New Progress on a Battery Material Project in Wangcheng, Hunan

According to "Wangcheng Vision," the exterior and outdoor works of the Mengxing Nano project, located in the Tongguan Industrial Zone of Wangcheng Economic Development Zone, Hunan province, are nearing completion and are expected to be delivered in April 2025.

The Mengxing Nano construction project includes two factory buildings, one office building, and supporting auxiliary facilities, with a total construction area of 33,416.97 m². It is a production site built by the Tongguan Industrial Zone of Wangcheng Economic Development Zone for Hunan Mengxing Nano Material Technology Co., Ltd. (Mengxing Nano).

Once completed and operational, the project is expected to produce and sell 40,000 mt of LMFP cathode materials annually, achieving an annual output value of approximately 2 billion yuan and generating annual tax revenue exceeding 80 million yuan. (Source: Battery 100 Forum - Battery Network)

【Project】10 Billion Yuan! CNMC Zhengyuan's 60,000 mt Lithium Battery Cathode Material Precursor Project Update

According to "China Chemical Sixth Construction," the second section of the first phase of CNMC Zhengyuan (Anhui) New Energy Technology Co., Ltd.'s (CNMC Zhengyuan) 60,000 mt lithium battery cathode material precursor project, undertaken by the South China Branch of China Chemical Sixth Construction, has entered the final stage.

This national key project is located in the eastern industrial park of Tongling Economic Development Zone, Anhui province, with a total investment of 10 billion yuan and covering an area of approximately 992 mu. It is the first project jointly invested in Anhui Tongling by China Nonferrous Metal Mining Group and Xiamen Tungsten (600549). The lithium battery cathode material precursor products produced will be used in NEV power batteries, ESS batteries, consumer electronics batteries, as well as the semiconductor and optoelectronics industries. The annual output value of the first and second phases is expected to reach 8 billion to 10 billion yuan.

CNMC Zhengyuan was established on November 28, 2022, as a subsidiary controlled by China Nonferrous Metal Mining Group, a large central state-owned enterprise directly managed by the State-owned Assets Supervision and Administration Commission of the State Council. It is also partially owned by XTC New Energy (688778), a listed subsidiary of Xiamen Tungsten, which is managed by the Fujian Provincial State-owned Assets Supervision and Administration Commission. (Source: Battery 100 Forum - Battery Network)

【Company】Lithium Carbonate Sector Publicly Listed Firm Sees 10 Billion Yuan Acquisition!

On the evening of January 16, Tibet Mining announced that its controlling shareholder, Tibet Venture Capital, and its concerted actor, Xinsha Hongyun Investment, signed a "Control Transfer Agreement" with Zijin International on January 16.

According to the agreement, Tibet Venture Capital and its concerted actor plan to transfer 17.51% of the company's shares to Zijin International, while Xinsha Hongyun Investment plans to transfer 7.31% of the company's shares to Zijin International. The total transferred shares are expected to account for 24.82% of the company's total equity. Zijin International will acquire a total of 392 million shares of Tibet Mining at a price of 35 yuan per share, corresponding to a 24.82% equity stake, with a total transaction amount of 13.729 billion yuan.

Before the transaction, Zijin International's concerted actors held 0.18% of Tibet Mining's shares. After the transaction, they will hold a total of 25% of the shares. Tibet Mining announced that its controlling shareholder will change from Tibet Venture Capital to Zijin International, and the actual controller will change from Yongming Xiao to the Shanghang County Finance Bureau. (Source: Battery 100 Forum - Battery Network)

【Update】Rongtong High-Tech to Upgrade Production Line to Achieve Annual NFPP Sodium-Ion Battery Output of 10,000 mt

According to the "Daye City Media Center," recently, at the warehouse of Hubei Rongtong High-Tech Advanced Materials Group Co., Ltd. (Rongtong High-Tech), 200 kg batches of sodium-ion battery cathode materials were packed and ready for shipment to Fujian.

"We began trial production of sodium-ion batteries on January 7, and have already produced five batches, totaling 5 mt. After various tests, all batches meet quality standards," said Li Jinmao, head of the sodium-ion project at Rongtong High-Tech. The mass-produced sodium-ion batteries meet domestic advanced standards in terms of capacity, compaction density, composition, impurities, crystal purity, and carbon content. Currently, there are tentative orders from leading domestic battery producers for 500-600 mt per month.

Li Jinmao revealed that sodium-ion battery production involves multiple steps, including mixing, coarse grinding, fine grinding, drying, sintering, and crushing, each of which is critical. Rongtong High-Tech initially upgraded its production line in November last year to meet sodium-ion battery production needs. Next, the company plans to further upgrade the production line to achieve an annual NFPP sodium-ion battery output of 10,000 mt. (Source: Battery 100 Forum - Battery Network)

【Industry】LFP Material Producers Stand Firm on Quotes, Prices Rise!

Last week, LFP market prices continued to rise, with an average increase of approximately 430 yuan/mt. Cost side, lithium carbonate prices showed a significant upward trend last week, rising by about 1,125 yuan/mt, which was the main driver of the LFP price increase. Additionally, recent increases in iron phosphate prices have strengthened the sentiment to stand firm on quotes among LFP material producers. Processing fees for some orders saw slight increases, but overall price hikes were not significant, and processing fees remained stable last week.

Supply side, LFP material producers maintained active production last week, with no significant production cuts observed. As of now, there are no reports of material producers planning to halt production during Chinese New Year. However, starting this week, some companies are expected to experience slight production declines due to pre-holiday logistics impacts and reduced labor availability, though the overall reduction is not significant. This month's production is expected to see a slight increase compared to the previous forecast. Demand side, downstream battery cell manufacturers showed strong production schedules for January and February, with significant YoY growth. (Source: SMM)

【Company】Tianqi Lithium: Conducting Impairment Test on Lithium Hydroxide Project Based on Latest Conditions

On the evening of January 19, Tianqi Lithium (002466) announced that the company initiated the "24,000 mt/year battery-grade monohydrate lithium hydroxide" and "Phase II 24,000 mt/year battery-grade monohydrate lithium hydroxide" projects (collectively referred to as the "lithium hydroxide project") in 2016 and 2017, respectively. While preparing the 2024 annual report, the company is conducting an impairment test on the lithium hydroxide project based on the latest conditions. As of now, no final conclusions have been reached regarding the assumptions and results of the impairment test. If the company subsequently determines that an asset impairment provision will be made for the project, the recognized asset impairment loss will significantly impact the company's 2024 operating performance. The company will fulfill its information disclosure obligations in a timely manner. (Source: Haiming Network)

【Performance】Lopal: 2024 Net Profit Expected to Lose 595 Million to 697 Million Yuan

On the evening of January 17, Lopal (603906) announced that it expects to achieve a net profit attributable to shareholders of -697 million to -595 million yuan in 2024, compared to a loss of 1.233 billion yuan in the previous year.

Lopal stated that in 2024, due to changes in the supply-demand relationship in the NEV industry chain, the lithium battery materials industry chain continued to operate at the bottom of the industry cycle. LFP product prices saw significant adjustments compared to 2023, coupled with inventory write-down losses, asset impairments, and goodwill impairments. Additionally, the company incurred significant non-recurring losses due to provisions for Hong Kong stock listing expenses and minority shareholder financial liabilities. Despite efforts to adhere to a differentiated product development strategy, actively seek opportunities to go global, and implement cost reduction and efficiency improvement measures, the company still faces challenges in reversing the situation in the short term, leading to the expected loss for 2024. (Source: Battery 100 Forum - Battery Network)

【Performance】Easpring Technology Expects Significant Decline in 2024 Performance, Net Profit Down Over 70% YoY

On January 16, Easpring Technology (300073) disclosed its 2024 performance forecast, estimating annual net profit attributable to shareholders to be between 450 million and 520 million yuan, a YoY decrease of 72.98% to 76.61%. In the previous year, Easpring Technology achieved a net profit of 1.924 billion yuan.

Easpring Technology explained that in recent years, the growth rate of the overseas NEV industry has fallen short of expectations, and competition in domestic and overseas markets has intensified. Factors such as a decline in the sales proportion of international customers and product iteration and replacement have led to a significant YoY decline in operating performance for 2024. (Source: Battery 100 Forum - Battery Network)

【Performance】Lanke Lithium's Performance Declines Over 80% YoY Due to Weak Lithium Carbonate Market Prices

On January 17, Keda Industrial (600499) announced that it expects to achieve a net profit attributable to shareholders of 9 billion to 11 billion yuan in 2024, a YoY decrease of 47.42% to 56.98%. The main reason is that its associate company, Lanke Lithium, experienced a performance decline of over 80% YoY due to weak lithium carbonate market prices, resulting in a YoY decrease of approximately 10 billion yuan in its contribution to the company's net profit attributable to shareholders.Meanwhile, during the reporting period, the company accelerated the globalization of its ceramic machinery business, deepened localized services, and promoted product iteration and innovation, achieving sustained growth in overseas revenue. However, the profitability of its overseas building materials business weakened during the same period. (Source: Battery 100 Forum - Battery Network)