[2020.09.03 Cobalt Lithium New Energy Internal Morning meeting Summary] Ternary material inventory pressure cobalt price slightly bearish

SMM, Sept. 3:

Battery terminal market:

In terms of ternary batteries, the demand of the power market picked up in the second half of this year, but the proportion of passenger cars was replaced by iron and lithium, and the overall order increment was not obvious. In addition, the small power market began to stabilize gradually, and orders may decline in the fourth quarter. The technical route has also been developed in many aspects, but on the whole, the main goal is low cobalt and safety. there are problems with the battery systems of many new energy vehicles in high temperature weather this summer, and battery enterprises and automobile companies are also constantly improving battery safety. some car companies have switched from high nickel ternary products to 5 and 6 series low cobalt ternary products.

Price of upstream raw materials:

Cobalt: the overall demand in the lower reaches of September increased slightly, but the inventory of ternary batteries and ternary materials was relatively high, and the price of ternary precursors was under pressure. although cobalt sulfate was in short supply, the price of cobalt sulfate was still under pressure. the market transaction price was 56000 yuan / ton. Cobalt chloride mainstream transaction price 6.50-66000 yuan / ton, sporadic transactions, considering the expected fourth quarter digital 3C procurement demand off-season, price bearish, cobalt chloride price may still have 1000-2000 yuan / ton down space.

Lithium: the lithium carbonate factory is in full production this week, and the supply is tight, but the downstream ternary material cost pressure is greater, the two sides are in a state of bargaining, and the price still needs to wait and see, which is expected to be known when purchasing downstream in mid-late September. In addition, at present, the price of lithium carbonate is at a low position, and the profits of some enterprises are under pressure, and the expansion and resumption of production may be postponed to the end of 20 years or the beginning of 21 years. In terms of lithium hydroxide, shipments are flat and the price is not too big / fluctuating for the time being.

Cathode materials and precursors: in terms of ternary precursors, the price of cobalt is stable this week, the price of nickel has increased greatly, most of the precursor enterprises have less inventory, and the market procurement demand is higher, which promotes the price of precursors to rise gradually. As the precursors and downstream pricing methods are more than the previous monthly average price, the increase in the price of nickel sulfate will still be gradually transmitted to the downstream, and the price of the precursor will rise or slow. Ternary material enterprises have partial inventory, precursor prices are under pressure, and battery companies do not accept the previous increase in cobalt salt, which will also put pressure on the price increase of ternary materials.

Nickel: SMM battery-grade nickel sulfate to the factory price of 275-28000 yuan / ton, compared with last week's mainstream market can be traded price up 2000 yuan / ton. Battery-grade nickel sulfate is still in short supply in the market this week, and the trading volume has increased to a certain extent compared with last week. The mainstream transaction price is concentrated at 27500 yuan / ton, and the single transaction volume is 200,300 physical tons.

News:

1. [BYD Brazil Lithium Iron Phosphate Battery Factory officially puts into production 18000 battery modules per year] recently, BYD's lithium iron phosphate battery factory in Manaus, Brazil has been officially put into production, with an annual production capacity of 18000 battery modules. This is BYD's third factory in Brazil and the first lithium iron phosphate battery factory in Brazil, with an investment of about 15 million reais (US $2.7 million) and covers an area of 5000 square meters.

2. [Tesla increased the delivery time of Model Y to 2-4 weeks] according to Tesla's official website, the delivery time of, Model Y models has been shortened from 4-6 weeks to 2-4 weeks. This means that North American customers will be able to receive their car orders by the end of the third quarter. According to media reports, the acceleration of Tesla's production is related to the casting machine that was recently put into use at the Fremont plant. Tesla China released information on the production of Model Y in the media on Aug. 24, in which a statement said that the huge casting machine had been put into use at the Fremont plant. At the same time, the installation of the GA 4.5 production line dedicated to the production of Model Y models has been completed in this factory.

3. [find another way? Honda's first pure electric car featuring "small" battery capacity is only half that of the Model 3.] on Aug. 27, Honda officially announced that it would launch its first production pure electric car, the Honda e, in Europe and Japan on Oct. 30, with a minimum suggested retail price of about 4.5 million yen (about 292000 yuan). The Honda e is a compact model that is used only for urban driving. The car can only travel 280km on a single charge and has only half the battery capacity of Tesla's Model 3. Another design highlight of the model is the removal of the rearview mirror.

SMM battery materials research team

Qin Jingjing 021-51666828

Mei Wangqin 021-51666759

Huo Yuan 021-51666898

Liu Xiaoyi 021-51666716