[annual Review] list of precursors of leading enterprises to expand production in 2020

SMM1: new energy vehicles have become the main direction of the transformation and development of the global automobile industry and an important engine to promote the sustained growth of the world economy. In this context, the growth of demand for lithium batteries has led to the rapid expansion of the domestic ternary precursor industry. Here, SMM summarizes the situation of leading enterprises to expand the production of precursors in 2020.

Fangyuan shares: on December 29, the Shanghai Stock Exchange issued the announcement of the results of the 126th Review meeting of the Kechuang Board listing Committee in 2020, and Guangdong Fangyuan Environmental Protection Co., Ltd. was approved for the first time. The company plans to raise 1.05 billion yuan to build a project with an annual output of 50, 000 tons of high-end ternary lithium battery precursors and 10, 000 tons of battery lithium hydroxide

Zhongwei Co., Ltd.: on December 23, Zhongwei New Materials Co., Ltd. officially landed on Kechuang Board. According to the prospectus, Zhongwei shares issued 56.97 million shares at an offering price of 24.60 yuan and raised 1.401 billion yuan. The funds raised will be used for the ternary cathode material precursors of high-performance lithium-ion batteries, and the production capacity of ternary precursors will be increased by 60,000 tons per year after reaching production.

Huayou New Energy: on December 18, the launching ceremony of the ternary precursor project of 50, 000 tons of high-nickel power battery was held by Huayou New Energy Technology (Quzhou) Co., Ltd.

Tianyuan Group: the production capacity of ternary cathode materials and precursors is 20,000 tons. At present, 10,000 tons of precursors have been built, and another 10,000 tons are under construction. The company has completed 20,000 tons of ternary cathode materials.

Sichuan New Lithium wants to: on October 20, Sichuan New Lithium wants to design a total of 100000 tons of ternary precursor capacity, with a first phase of 20, 000 tons, which is currently under construction and is expected to be put into production next year, but production has been slightly delayed due to civil construction problems. The project and the 50, 000-ton cathode material project will form an annual output value of more than 15 billion, profits and taxes of more than 1.5 billion yuan, and more than 2000 employees.

Huayou Cobalt Industry: it was announced at the end of May that the total amount of funds to be raised for non-public offerings will not exceed 6.25 billion yuan. After deducting the issuance expenses, the net funds raised will be used for the project with an annual output of 45000 tons of high nickel metal matte, the project of ternary precursor materials for 50, 000 tons of high-nickel power batteries, the construction project of Huayou headquarters Research Institute and supplementary working funds. 3 billion yuan, 1.3 billion yuan, 300 million yuan and 1.65 billion yuan were invested respectively.

Grimmy: on April 13th, Grammy announced that in order to further promote the cooperation between the company and South Korea's ECOPRO Co., Ltd. ("ECOPRO") in the business of NCA&NCM high-nickel precursor materials for new energy power batteries, Fu an Qingmei Energy Materials Co., Ltd. ("Fu an Qingmei"), a subsidiary of the company, recently signed a memorandum of understanding (MOU) with ECOPRO on the cooperation of NCA&NCM high nickel precursor materials for new energy power batteries. Fu'an Qingmei and ECOPRO agreed to set up a joint venture in Fu'an Qingmei Park by 51% by June 2020. the main production target for the production of high nickel precursors NCA and NCM, is to reach 24000 tons in 2022 and 48000 tons in 2024.

At the end of February, the total amount of funds raised in this offering plan will not exceed 3 billion yuan. After deducting the issuance expenses, the net funds raised will be used to invest in the green dismantling and recycling vehicle power battery package project, the ternary power battery industry chain project, and supplementary liquidity. In addition, Grimme plans to implement the 30,000t / a ternary power battery material precursor production project, the main body of which is Jingmen Greenmei, a wholly-owned subsidiary of the company, with a total investment of 860 million yuan. the project plans to build a 30,000t / a ternary power battery material precursor production line, which is located in the Green Mei City Mineral Resources Recycling Industrial Park in Jingmen Economic Development Zone, with a construction period of 3 years.

Shanshan shares: on March 25, Shanshan Energy Co., Ltd. announced that the holding subsidiary Shanshan Energy plans to purchase raw materials for lithium batteries from the related party Fujian Changqing New Energy before April 30, with a transaction value of less than 200 million yuan. The first phase of the Changqing new energy project was completed and put into production at the end of 2019, and the purchase of Shanshan is likely to be the ternary precursor that evergreen new energy has just been put into production. At present, Cunninghamia lanceolata has a production capacity of 60,000 tons of cathode materials, 80,000 tons of finished anode materials and 40,000 tons of electrolyte. In addition, Shanshan Changsha base has an annual output of 100000 tons of cathode material project, and 100000 tons of negative electrode material Baotou integrated base project has also been put into production.

SMM believes that in 2020, China's ternary precursors have a production capacity of 790000 tons, accounting for about 75% of the global market share. At present, the utilization rate of capacity is only 40%, and there is still overcapacity in the market. Nowadays, there are two main reasons for the mass production expansion of leading enterprises: 1. Due to the problem of overseas environmental impact assessment, the speed of building precursor factories is slow, overseas precursor enterprises are also relatively few, and the precursor market is mainly concentrated in China. Therefore, with the outbreak of the global new energy vehicle market, the demand for upstream materials will increase significantly, mainly relying on the Chinese market. Due to the previous drive enterprises to expand production in advance to better cope with the rapid development of the new energy market in the future. 2. At present, there are many and miscellaneous precursor enterprises in China, and the market competition is fierce. Large factories with large production capacity can better cooperate with downstream ternary material enterprises or battery enterprises to meet the downstream demand for products and output. On the other hand, small and medium-sized enterprises without funds or plans to put into production will be phased out or become contract factories in the future.