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Lithium industry leader is involved in cobalt industry! Ganfeng Lithium Industry bid for nearly 6.9% stake in Tengyuan Cobalt Industry for about 300 million yuan

iconJun 29, 2020 13:48

SMM News: recently, Ganfeng Lithium Industry won nearly 6.9% stake in Tengyuan Cobalt Industry for about 300 million yuan. Tengyuan Cobalt Industry mainly produces cobalt salt series such as cobalt chloride, cobalt sulfate and battery-grade cobalt tetroxide, with an annual output of 6500 tons of cobalt metal, more than 3000 tons of electrodeposition copper and 500 tons of crude lithium carbonate.

The leader of the lithium industry began to set foot in the cobalt industry!

On the evening of June 28th, Ganfeng Lithium Industry announced that recently, with its own capital of 300.117 million yuan, the company successfully won 6.514553 million shares in Ganzhou Tengyuan Cobalt New Materials Co., Ltd. ("Tengyuan Cobalt") held by Xinyu High-tech Investment Co., Ltd. ("Xinyu High Investment"). After the completion of the transaction, the company will hold 6.8966% of Tengyuan Cobalt.

According to the official website of Tengyuan Cobalt Industry, the company was founded in 2004 and completed the capital increase and share expansion in 2015. Xiamen Tungsten Industry Co., Ltd. bought a stake in Tengyuan Cobalt Industry and changed its name to Ganzhou Tengyuan Cobalt New Materials Co., Ltd. in August 2016, it is a mixed ownership enterprise.

Tianyan survey data show that Xiamen tungsten industry currently holds 13.82% of Tengyuan cobalt, making it the company's second largest shareholder.

Tengyuan Cobalt Industry mainly produces cobalt salt series such as cobalt chloride, cobalt sulfate and battery-grade cobalt tetroxide, with an annual output of 6500 tons of cobalt metal, more than 3000 tons of electrodeposition copper and 500 tons of crude lithium carbonate.

腾远钴业最近一年又一期的财务数据( 单位:万元人民币)

Financial data of Tengyuan Cobalt Industry in recent years (unit: RMB 10,000)

Financial data show that from 2018 to 2019, Tengyuan Cobalt achieved revenue of 1.68 billion yuan and 1.73 billion yuan respectively, and net profit of 180 million yuan and 110 million yuan respectively.

According to the 2016-2025 development plan of Tengyuan Cobalt Industry, the overall development idea of the company is to expand upstream to ensure a stable source of resources and to expand the product market downstream. Seize the opportunity of the development of new energy vehicle batteries and China's military industry, make timely and rational use of the capital market, with equal emphasis on scale and benefit, and form an annual output of 20000 tons of cobalt, more than 6000 tons of copper, including ternary battery cathode materials and battery materials, metal cobalt and other varieties of production capacity, ranking in the forefront of China's cobalt industry.

Since 2015, China has been the world's largest consumer of cobalt. However, China relies heavily on imports of cobalt raw materials, and the degree of dependence on imports is more than 95%.

In order to ensure continuous access to cobalt and copper raw materials needed for production, the company has implemented the first phase of wet smelting project of DRC (DRC) Tengyuan Copper and Cobalt Resources Co., Ltd., making full use of foreign rich cobalt and copper mineral resources to produce cobalt intermediate products and ensuring the source of raw materials for domestic cobalt smelting enterprises, which is conducive to alleviating the shortage of cobalt and copper resources in China.

In terms of capacity expansion, the "Environmental impact report on remote Intelligent technological Transformation and upgrading of Ganzhou Tengyuan Cobalt New Materials Co., Ltd. with an annual output of 20,000 tons of cobalt and 10,000 tons of nickel metal series products and the environmental impact report of matching production projects of raw and auxiliary materials" published at the end of 2019 by Tengyuan Cobalt Co., Ltd. The company plans to build a project with an annual output of 20,000 tons of cobalt and 10,000 tons of nickel metal series products in Ganxian Maodian new material industry base for remote intelligent technological transformation and matching production of raw and auxiliary materials. After the completion of the project, the annual output of cobalt metal is 20000t (products include cobalt sulfate, cobalt chloride, cobalt electrodeposition, ternary precursors), copper electrodeposition 6414t, nickel metal 10000t (products include nickel sulfate and ternary precursors), manganese metal 10000t (products include manganese sulfate and ternary precursors), lithium carbonate 9850t.

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