[2020.04.30 minutes of Internal Morning meeting of Cobalt and Lithium New Energy] the pre-festival market will wait and see if the prices of cobalt and lithium may be loosened after sporadic transactions.

30 April:

Battery end Market:

Power market, the current European epidemic has improved, car companies in Europe factories have recently resumed production, such as BMW, Volkswagen, Daimler will gradually resume production in Germany. In the US, by contrast, the UAW said on Thursday that it was "too early and risky" to restart production in early May, and that US plants such as Tesla would continue to delay reopening. Overseas car companies, the global head battery factory in May battery orders are expected to continue to decline, it is difficult to return to normal in the short term. Consumer and small power market, the gradual increase of domestic electric bicycles, mainly from the sharing bike platform, such as Hello bike, Meituan bike, etc., its demand for ternary battery, lithium iron phosphate battery and lithium manganate battery has increased.

Upstream raw material prices:

Cobalt: the pre-festival market basically enters the vacation state, the transaction is sporadic. Considering Gansu collection and storage rumors, cobalt oxide plants due to raw material shortage or production reduction and other news, cobalt chloride, cobalt oxide manufacturers intend to "raise the price" this week, but downstream lithium cobalt acid manufacturers responded coldly. Downstream enterprise raw material inventory is low, after the section or increase procurement demand, the market cobalt oxide inventory is more than cobalt chloride, cobalt oxide price may be more difficult to maintain.

Lithium: pre-festival market transactions are still deserted, the terminal is in the inventory stage, material section on-demand procurement of lithium carbonate, no more willingness to stock. There is a possibility of progress and differentiation in the price of industrial grade lithium carbonate in Qinghai: manufacturers who have stable customers and sign long orders have a strong willingness to bid, and the current quotation is maintained at 3.75-38500 yuan / ton; the other part has inventory pressure, enterprises ready to ship, or use low-price strategies to enter the market. Low prices for industrial lithium carbonate after the festival could be hit. Jiangxi industrial carbon price due to a certain cost support, limited room for decline, the current offer is maintained at about 40,000 yuan / ton.

Cathode materials and precursors: the domestic power market recovers slowly and is affected by the reduction of battery production. The domestic ternary materials and ternary precursor plants have been reduced in April. Consumer and small power market in addition to electric bicycles, other products have reduced production, Sanyuan material factory expectations for May is poor, reduce the volume of procurement, leading to a reduction in the price of precursors.

Nickel: nickel sulfate downstream precursor orders and prices have fallen, the current power market demand is weak, consumer market orders are relatively good, downstream requirements for raw materials have been adjusted. At present, manufacturers using nickel intermediates as raw materials still have high prices because of their high costs, and may have plans to reduce production in May, while enterprises with waste as raw materials have relatively low costs and better orders.

News:

1. [Yaha Group plans to increase the annual output of 20, 000 tons of battery grade lithium hydroxide and 11000 tons of lithium chloride by not more than 1.5 billion yuan] on April 29, Yaha Group disclosed the plan for the non-public offering of A shares. The number of non-public offering shares shall not exceed 287 million shares (including the number of shares), and the issuing object shall not exceed 35 (including 35) specific investors, and the total amount of funds to be raised shall not exceed 1.5 billion yuan (including the amount of capital). After deducting the issuance fee, it will be used for an additional 20, 000 tons of battery-grade lithium hydroxide, 11000 tons of lithium chloride and its products and supplementary liquidity. After the implementation of the project of "adding 20, 000 tons of battery grade lithium hydroxide, 11000 tons of lithium chloride and their products", the company can supply not only the raw materials of positive electrode materials for lithium batteries, but also the raw materials of negative electrode materials, thus enriching the variety of lithium products of the company.

2. [Yongshan Lithium Industry Changsha Lithium Salt Project with an annual production capacity of 45000 tons] on April 29, the Yongshan Lithium Industry Project in Tongguan Industrial Park, Wangcheng Jingkai District, officially started, marking the addition of a new engine to the Changsha advanced energy storage material industry. Cunninghamia lanceolata shares invested 2 billion in Wangcheng Jingkai District Tongguan Industrial Park to build an annual output of 45000 tons of lithium salt project, land about 350 mu, will be ahead of the global lithium salt industry knowledge-intensive high-tech office R & D headquarters. The first phase of the project will build 15000 tons of lithium hydroxide and 10, 000 tons of lithium carbonate per year. After the second phase reaches production, the annual output value is expected to reach 3.3 billion yuan, and the annual tax payment will reach 240 million yuan. The project will help Cunninghamia lanceolata shares become an international lithium salt supplier with high safety, high quality and low cost.

3. [long-term Lithium 7 billion put into Construction of cathode material Factory] on the morning of April 28, major projects in Hunan Province concentrated on 80 projects at the Changsha venue, with a total investment of 38.8 billion yuan, setting off an upsurge of "seizing opportunities, grasping projects, and stabilizing investment." Of the 80 projects, industrial projects accounted for more than half, reaching 43, with a total investment of 27.6 billion yuan. After the completion of the long-term lithium battery cathode material expansion project, it can have a ternary material production capacity of 80000 tons / a power battery. The construction of the project is committed to building a leading enterprise of battery cathode materials. After completion, it is expected to achieve operating income of about 12 billion yuan, a total annual profit and tax of about 600 million yuan, and provide about 1200 jobs. Bring good economic benefits to enterprises, lay a solid foundation for development, enhance market competitiveness, economic and social benefits are remarkable.

SMM Battery Materials Research team

Hu Yan 021-51666809

Qin Jingjing 021-51666828

Mei Wangqin 021-51666759

Huo Yuan 021-51666898

Wuyang 021-51666818