[special topic on SMM] list of production expansion of leading enterprises of cathode materials in 2020

SMM1 March 19: with the improvement of power battery demand, power battery manufacturers actively seize market share, thus driving the upstream cathode material market. Cathode materials play an important role in lithium batteries, and leading enterprises have increased their production capacity. For example, recently, Fulin Seiko announced that Jiangxi sublimation, a subsidiary of the company, plans to invest in the construction of a project with an annual output of 50,000 tons of new energy lithium cathode materials, with a total investment of 600 million yuan. The project will be implemented in Shehong West International Technical Cooperation Industrial Park. The project is expected to have an annual production capacity of 50,000 tons by the end of December 2021, and the completion time of the project depends on the progress of the project. Zhenhua New Materials plans to raise 1.2 billion yuan for lithium-ion battery cathode material production line construction project (Shawen II), lithium-ion power battery ternary material production line construction (Yilong II) and supplementary liquidity.

Here, SMM summarizes the production expansion of upstream cathode material enterprises in 2020, as follows:

Dow Technology: on December 30, the company plans to invest in the full-life-cycle green manufacturing project of lithium-ion battery materials in Longnan Economic and technological Development Zone. The project company is temporarily named Jiangxi Jiana Energy Technology Co., Ltd., with a registered capital of 200 million yuan. the main production and business scope are power battery cathode material precursors, cobalt salt products, nickel salt products, waste lithium battery recycling and so on. The announcement shows that the total investment of the project is 7.5 billion yuan, and the proposed industrial land is located in Fukang Industrial Park, Jingkai District, Longnan, covering an area of about 600mu. The content of the construction is the annual output of 50, 000 tons of power battery cathode material precursors, 20, 000 tons of metal cobalt salt products, 30, 000 tons of metal nickel salt products, and 50, 000 tons of waste lithium battery recycling project. The project is expected to start construction at the beginning of 2021, the preparation and construction period is expected to be 2 years, and will be put into production by the end of 2022. The annual output value of the first phase of the project is expected to exceed 10 billion yuan after reaching full production.

Xiamen Tungsten New Energy: on December 29th, the Shanghai Stock Exchange examined and approved the IPO application of Science and Technology Innovation Board of Xiamen Xiamen Tungsten New Energy Materials Co., Ltd. According to the prospectus of Xiamen Tungsten New Energy, 1.5 billion yuan will be raised in this listing, of which 900 million yuan will be used for the industrialization project of 40000 tons of lithium-ion battery materials per year (phase I and II), and 600 million yuan will be used to supplement liquidity.

Xiangtan electrification: at the end of December, it was reported that Xiangtan Electrochemical Technology Co., Ltd. planned to contribute 110.2 million yuan in currency with Xinxiang Zhongtian New Energy Technology Co., Ltd., Jingxi Lisheng Enterprise Management Partnership (limited partnership) (provisional name, subject to the approval of the market supervision and management department), Jingxi Lipeng Enterprise Management Partnership (limited partnership) (provisional name, Subject to the approval of the market supervision and administration department) jointly invest in the establishment of Jingxi Lijin New Materials Co., Ltd. After the establishment of the joint venture company, it is proposed to build a new automatic production line with an annual output of 30,000 tons of lithium manganate, and the project is planned to be carried out in phases, with a capacity of 20,000 tons per year in the first phase, and the annual production capacity will be increased by 10,000 tons in the future depending on the market situation of lithium manganate. the project is currently in the preparatory stage.

Longyi Technology: the company announced that it intends to acquire lithium iron phosphate-related assets and businesses within the scope of Beitre's consolidated statements through itself or its subsidiaries, and Bertre agreed to acquire the above-mentioned underlying assets and businesses. the main purpose is to further expand the company's business system with the help of Beit's technological and market advantages. The signing of this "framework agreement" is also an important layout made by the company to comply with the development trend of the automobile industry, which will help to promote the long-term development of the company.

Taifeng first: December 24 news, the reporter learned from Nanchuan Industrial Park of Xining Development Zone, Qinghai Provincial Department of Industry and Information Technology, Xining Municipal Government, Xining Economic and technological Development Zone, Qinghai Taifeng leading Lithium Energy Technology Co., Ltd. signed the "annual output of 160000 tons of high-energy density lithium materials intelligent manufacturing base project" investment cooperation agreement to jointly create high-energy density lithium materials intelligent manufacturing base.

It is reported that the project landed in Nanchuan Industrial Park of Xining Economic and technological Development Zone, with a total investment of 3 billion yuan and the construction of an intelligent manufacturing base of 160000 tons of high-energy and dense lithium materials in the first phase. Gao Li, leading chairman of Qinghai Taifeng, said that the signed intelligent manufacturing base project with an annual production capacity of 160000 tons of high-energy density lithium materials is scheduled to start in the spring of 2021, be debugged at the end of the year, and put into production in the first quarter of 2022. After the project is completed and reached production, the annual sales revenue will exceed 12 billion yuan. At that time, Taifeng will be in the forefront of domestic lithium cathode material manufacturers.

Dangsheng Technology: in early December, Dangsheng Technology announced that the company intends to issue shares to the controlling shareholder Mining and Metallurgical Group to buy its 32.5% minority stake in Changzhou Dangsheng. After the completion of this transaction, Changzhou Dangsheng will become a wholly-owned subsidiary of Dangsheng Technology. The number of shares to be issued by the company at 24.30 yuan per share is 16.8978 million shares, accounting for 3.87% of the total share capital of the listed company before this transaction. It is understood that Changzhou Dangsheng's main products are high-performance lithium battery cathode materials, which is responsible for the production and operation of Changzhou lithium battery new material industry base. The base plans to build an annual production capacity of 100000 tons of lithium cathode materials in the long term. The first phase of the project plans to build an annual production capacity of 50, 000 tons of cathode materials, of which the production capacity of 20, 000 tons of cathode materials in the first phase of the project has already completed the construction of the production plant and the installation of the production line. Is carrying on the production line debugging and the product trial production work, the market space is big, has the strong profitability.

Fengyuan shares: November 17, Fengyuan shares said that the company has covered lithium iron phosphate LFP and ternary material NCM two mainstream products, which can be widely used in power batteries, energy storage, consumer lithium batteries and other emerging fields; the ongoing high nickel ternary construction project will significantly enhance the company's first-mover advantage in the field of high-performance and high value-added cathode materials. In addition, the company expects to have a production capacity of 25000 tons of cathode materials after the completion of this refinancing project, which will have a strong capacity advantage in the lithium cathode material supply chain industry at home and abroad.

Rongbai Technology: on October 29th, Rongbai Technology announced that it plans to increase the capital of South Korea's wholly-owned subsidiary JAESE Energy Co., Ltd., to build an annual production and construction project of 20, 000 tons of high-nickel cathode materials in South Korea. Rongbai Technology said that the construction of this high-nickel cathode material project will help the company to open up the Korean ternary cathode material market, enrich the company's overseas sales channels, and improve the company's global strategic layout.

Libao New material: in early September, Libao New material Company officially supplied to Ningde era! This time, Libao sent 90 tons of M515 products to CATL, which will continue to be supplied in the future. This official delivery marks the substantive stage of the cooperation between Yibin Libao and CATL, and the company will continue to carry out more in-depth and extensive cooperation with CATL.

Guoxuan Hi-Tech: on July 16, Hefei Guoxuan Battery material Co., Ltd., a subsidiary of Guoxuan Hi-Tech, signed a contract with the Management Committee of Hefei Lujiang High-tech Industrial Development Zone, which marks the official launch of a major project designated by Volkswagen since Volkswagen invested in Guoxuan. On May 28, 2020, Volkswagen China invested about 1.1 billion ou yuan to acquire a 26% stake in Guoxuan Hi-Tech and became its major shareholder. On the same day, Guoxuan Hi-Tech disclosed a pre-plan for a non-public offering of A-shares, the total amount of funds raised by the company did not exceed 7.306 billion yuan, of which Volkswagen subscribed to China for a total of not less than 6 billion yuan. According to the plan, the funds raised will be used to include the signed Guoxuan material project with an annual output of 30000 tons of high-nickel ternary cathode materials. In addition, the funds raised will also be used for the industrialization project of high specific energy lithium battery with annual production of 16GWh and supplementary working capital.

German Nano: on July 1st, German Nano issued a fund-raising prospectus, intending to issue shares to no more than 35 targets to raise no more than 1.2 billion yuan for the annual production of 40,000 tons of nanometer lithium iron phosphate project and supplementary liquidity. For the purpose of fund-raising and production expansion, German Nano said that in order to adapt to the rapid development of downstream new energy vehicles and energy storage market, meet the capacity expansion needs of downstream lithium-ion battery manufacturers, and ensure that the company continues to occupy a leading position in the field of cathode materials, there is an urgent need to further expand production capacity. After the production of the above projects, German Nano will have a capacity of more than 100000 tons to support the sustainable development of the new energy vehicle industry and the rise and commercialization of the energy storage market.

The company signed the Investment Agreement with the Management Committee of Qujing Economic and technological Development Zone on March 6. the company intends to invest in the construction of the "Lithium Iron Phosphate production Project" within the jurisdiction of the Management Committee of Qujing Economic and technological Development Zone. The total investment of the project is about 1 billion yuan. According to the announcement, the site for the implementation of the lithium iron phosphate project is located in Xicheng Industrial Park, with a planned land of 300 mu, and the construction of the project includes production workshops, warehouses, canteens and other ancillary facilities.

Long-term Lithium Department: at the end of April, major projects in Hunan Province were concentrated on 80 projects in Changsha, with an estimated total investment of 38.8 billion yuan. Among 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 will have an annual production capacity of 80,000 tons of power battery ternary materials. The construction of the project is committed to building a leading enterprise of battery cathode materials, which is expected to achieve a business income of about 12 billion yuan, a total annual profit and tax of about 600 million yuan, and provide about 1200 jobs. Hunan Changchang Lithium Co., Ltd. Automotive lithium battery cathode material expansion project is committed to the R & D and production of NCM and NCA series products. The project is located in Changsha National High-tech Development Zone, with a total planned land area of 772.08 mu and a total investment of about 7 billion yuan.

Samsung SDI: April 10, according to foreign media reports, Samsung SDI will set up a joint venture with South Korean cathode material supplier ECOPRO BM to produce the next generation cathode materials. Under the agreement, ECOPRO BM will invest 72 billion won (460 million yuan) in the joint venture and hold 60% of the shares, while Samsung SDI will invest 48 billion won (280 million yuan) in 40%. The two companies plan to complete the construction of a cathode material production line in Posco, Gyeongsangbei, by the end of the year, which will be put into production in the first quarter of 2022, with an annual production capacity of 50,000 tons.

SMM believes that although 2020 is affected by the epidemic, the expansion plan of cathode materials has been delayed to varying degrees, but from the industry trend, cathode materials enterprises have made positive preparations for the outbreak of the new energy market in the future. In 2020, the production capacity of cathode materials is 1.2 million tons, the output is only 500000 tons, and the capacity utilization rate is less than half. At present, the main expanded cathode materials in the market are ternary materials and lithium iron phosphate materials, both of which are mainly downstream markets for new energy vehicles. At present, the growth rate of cathode material production is far less than the speed of capacity expansion, and the market is in overcapacity. However, with the vigorous development of the global new energy vehicle market, the growth rate of market demand may be much faster than expected. in addition to preparing for the high growth rate of demand in the future, high-energy enterprises can also work more closely with Chinese and overseas battery companies. In addition, in the past two years, there are more and more battery enterprises and cathode material enterprises joint venture production, mainly in order to ensure product research and development and production capacity, but also conducive to the strategic cooperation between the two.