Jiangsu Cathay Pacific: Poland's 40,000 t / a lithium-ion power battery electrolyte project is being communicated and has previously raised the price of the electrolyte.

On the news of June 7, an investor asked Jiangsu Cathay Pacific about the progress of the company's Polish 40,000 tons of electrolyte. In response, Jiangsu Cathay replied that at present, our Polish 40,000 ton / year lithium-ion battery electrolyte project is in coordination and communication with local regulators. On the other hand, the infrastructure and public works supporting construction of the Polish Prusice 40, 000 tons / year lithium-ion power battery electrolyte project are also being carried out smoothly, and are progressing steadily in accordance with the original plan.

It is reported that the project has a total investment of 300 million yuan and covers an area of about 96 mu. The implementation of this project can enhance the company's differentiated competitiveness in lithium-ion battery electrolyte business and promote the sustainable development of the company.

It is worth mentioning that, also in Poland, Shi Da Shenghua had previously issued a notice saying that due to the influence of the global COVID-19 epidemic, the local examination and approval and other work of its project could not be substantially advanced. In view of the fact that the current cooperation agreement between the company and the joint venture party has expired, the advantages of the original project site no longer exist, coupled with the impact of the future epidemic and uncertain factors of market development. The company decided to terminate the construction of lithium-ion battery materials in Poland.

However, according to the progress of the Jiangsu Cathay Pacific project, it seems that it has not been seriously affected by the epidemic. In addition, on May 31, Jiangsu Cathay Pacific also said that Ningde Huarong's annual capacity of 40,000 tons of lithium-ion power battery electrolyte project has been formally produced in March 2021.

It should be noted that recently, affected by the price of raw materials, Jiangsu Cathay Pacific raised the price of the company's electrolyte. Among them, lithium hexafluorophosphate accounts for nearly 40% of the total cost of the electrolyte, and its price will directly affect the cost of the electrolyte. However, since 2020, the price of lithium hexafluorophosphate has begun to rise in a straight line, and the enterprises that have the capacity to produce lithium hexafluorophosphate in the market have reached a state of full production and full sale. even so, the price of lithium hexafluorophosphate continues to increase. Some relevant data even show that since the beginning of this year, the quoted price of domestic lithium hexafluorophosphate has risen from 110000 yuan / ton to 270000 yuan / ton, an increase of more than 145%, a four-year high.

It is predicted that lithium hexafluorophosphate, as the core raw material of electrolyte, is the key to the production of lithium battery, and its inventory is at the lowest level in the same period in the past three years. Considering the good production and sales data of downstream new energy vehicles, the tight supply and demand pattern of lithium hexafluorophosphate may continue. In this case of obvious imbalance between supply and demand, a number of lithium hexafluorophosphate manufacturers led by polyfluoroduo have raised their prices, and it is not difficult to understand the behavior of Jiangsu Cathay Pacific to raise the price of electrolyte.

As of June 8, Jiangsu Cathay Pacific fell 0.74% to 9.45 yuan per share.