[2020.07.09 Morning meeting Summary of Cobalt Lithium New Energy] uncertainty of cobalt raw materials increases the price of industrial-grade lithium carbonate slightly

SMM, July 9:

Battery terminal market:

According to the SMM new energy database, the production of new energy vehicles in June was 91000, an increase of 21.4% from the previous month, including 79000 new energy passenger vehicles, accounting for 86.2%, 4600 new energy passenger cars, accounting for 5%, and 8000 new energy special-purpose vehicles, accounting for 8.8%. Tesla electric cars still ranked first this month, but slightly lower than in May. The output of BYD, SAIC GM Wuling, SAIC, Lulai, Xiaopeng and other car companies all increased month-on-month. The installed capacity of power batteries was 4.7 GWH, an increase of 33.9% compared with the previous month, of which 3GWH was installed for ternary batteries, accounting for 63.8%, and 1.7 GWH for lithium iron phosphate batteries, accounting for 35.5%. In June, the installed capacity of iron and lithium increased significantly compared with the previous month. In addition to the increase in the output of new energy commercial vehicles, the proportion of matching passenger vehicles also increased.

Price of upstream raw materials:

Cobalt: six workers in the Democratic Republic of the Congo Copper and Cobalt Mine were diagnosed, the uncertainty of cobalt raw materials was further increased, and the state of emergency in the Democratic Republic of the Congo was extended to July 21, which may affect domestic imports of cobalt raw materials from August to September. Cobalt salt low price shipping willingness to reduce, cobalt sulfate this week a few new orders, cobalt chloride transactions sporadic. The supply and demand structure of cobalt sulfate is improved, the uncertainty of superimposed cobalt raw materials is increased, and the price decline space may be further narrowed.

Lithium: recently, the domestic downstream demand has slightly recovered, the market inquiry has increased, the inventory level of large industrial carbon companies is on the low side, and the price adjustment is obvious. Other manufacturers are now holding up their price attitude, and the price of industrial carbon has increased slightly. The competition in the electric carbon market is obvious, it is difficult for manufacturers to ship goods, the price does not fluctuate for the time being, and the market is mainly wait-and-see.

Cathode materials and precursors: ternary materials and precursors, sporadic transactions this week, the price of precursors is relatively strong, some small factories of ternary materials have high inventory, choose to reduce the price of shipments, the price of ternary materials has dropped by a low margin. Lithium iron phosphate, the downstream energy storage market and power market demand continues to increase, but battery factories have strong bargaining power, iron and lithium prices have no room to rise. The terminal demand for lithium manganate increases slightly, and the price has reached the bottom, which basically fluctuates with the price of lithium carbonate.

Nickel: due to the pull up of nickel in Shanghai, it has stabilized at a recent high of about 107400 yuan / ton in the past two days, and the nickel sulfate factory has a strong willingness to raise the price. The mainstream quotation of battery-grade nickel sulfate has reached 2.35-24000 yuan / ton, and the acceptable market transaction price of the nickel sulfate plant is 2.33-23500 yuan / ton. However, considering that the fundamentals have not improved, the downstream buyers of battery-grade nickel sulfate generally hold a weak attitude towards the late nickel sulfate price, and the wait-and-see mood is strong at present.

News:

1. [wholesale sales of new energy passenger vehicles fell 34.9% in June compared with the same period last year] Wholesale sales of new energy passenger vehicles in June were 85600, down 34.9% from the same period last year, up 20.1% from the previous month. Among them, plug-in hybrid sales of 17700 vehicles, down 11% from the same period last year. Wholesale sales of pure electric vehicles were 67000, down 40 per cent from a year earlier. In June, the trend of high-end electric vehicles was obvious. Electric vehicles of Class A and below decreased by 56% compared with the same period last year. Electric vehicles of Class B and above increased eight times compared with the same period last year. In June, sole proprietorship and joint venture new energy had a strong performance and became an important force in the new energy vehicle market.

2. [six people infected with the new crown virus at Glencore's KCC copper-cobalt mine in Congo gold] it is reported that there have been six cases of new crown virus infection at Glencore's KCC copper-cobalt mine in Lualaba, Democratic Republic of the Congo. None of the other workers tested showed signs of infection with the new crown virus, and they are being isolated at home under medical supervision. Currently, a provincial testing team is tracking other close contacts. The KCC copper mine did not indicate the impact on production, but it had little impact on production, according to people familiar with the matter. KCC said it had stepped up epidemic prevention measures in the past three months, and Glencore, through Katanga Mining's stake in KCC75%, cut its 2020 cobalt production forecast to 26000 tons, compared with 29000 tons.

3. [Penghui Energy: raising no more than 890 million yuan for the construction of lithium-ion battery project production capacity will reach the year of 2GWh/] Penghui Energy plans to issue convertible bonds to raise no more than 890 million yuan for Changzhou Lithium-ion Battery and system Intelligent Factory (Phase I) construction project, new high-performance lithium-ion battery R & D equipment purchase project and supplementary liquidity. The construction project of Changzhou Lithium Ion Battery and system Intelligent Factory (Phase I) is implemented by Changzhou Penghui, a wholly-owned subsidiary of the company, located in Jincheng Science and Technology Industrial Park, Jintan District, Changzhou City, with a planned land area of 193.63 mu. The project land has obtained the real estate certificate. The construction period of this project is 18 months (excluding commissioning and production phase). The construction content is to build the plant and production line of lithium-ion battery and system. After the project is completed and all production is reached, the production capacity of lithium-ion batteries and systems will be increased by 2GWh/ years (the raw materials of the system are self-produced lithium-ion batteries), of which the production rate will be 50% in the first year and 100% in the second year.

SMM battery materials research team

Qin Jingjing 021 Murray 51666828

Mei Wang Qin 021 Mui 51666759

Huo Yuan 021 Murray 51666898