Exclusive: SMM’s lithium battery team Qinghai field trip-- Dongtai Jinai’er Lithium Resources

SHANGHAI, Jul 26 (SMM) - The lithium battery industry is booming in 2021. The new energy industry is rising rapidly under the background of stimulus policies and the global electrification trend, driving the entire industry chain into a stage of vigorous development.

As one of the most important basic raw materials for new energy vehicles, lithium resources saw short supply and price increase at the end of 2020 and stable prices amid recovering supply in Q2 2021. The supply of lithium resources has become an important influencing factor for the future development of new energy. How will the customer base in the industry chain, including downstream precursors, materials, batteries, automobiles, and upstream nickel, cobalt and lithium raw material manufacturers, balance the increase in production and the supply of raw materials?

SMM has integrated the upstream and downstream enterprises in the lithium battery industry chain and conducted on-site surveys on lithium battery related companies. 

SMM’s New Energy Division Director Wang Tian and marketing consultant Yu Lei has visited raw material enterprises of lithium battery industry in Qinghai from July 19-23 to seek cooperation with the enterprises.

About the Dongtai Jinai’er Lithium Resources

Founded in June 26, 2015, Dongtai Jinai’er Lithium Resources is a pilot enterprise for mixed ownership reform in Qinghai with a registered capital of 840 million yuan.

Its shareholders include Qinghai Taifeng Xianxing Lithium Energy Technology (49.5%), Western Mining (27%), Qinghai Lianyu Potash (20.34%), Qinghai CITIC Guoan Technology Development (2.16%) and Qinghai State-owned Assets Investment Management (1%). The company is also the controlling shareholder of Qinghai Lithium Industry.

The company had altogether 246 workers (211 males, 35 females) as of December 1, 2020, including 5 senior executives and 22 mid-level managers, among whom there were also 1 postgraduate, 30 undergraduates, and 67 employees with junior college degrees and 10 members of the Communist Party of China.

Factory Tour

The delegation visited the factory of Dongtai Jinai’er Lithium Resources to gain insights into the production process and product quality of the company's lithium carbonate and other products.

Qinghai Dongtai Jinai’er Lithium Resources is the exclusive developer of mineral resources in Qinghai Dongtai Jinai’er Salt Lake and has obtained the Mining License issued by the Provincial Department of Land and Resources on November 15, 2018.

Technology Exchange

Representatives of SMM and lithium downstream enterprises conducted in-depth exchanges on the core competitiveness and development plans of Qinghai Dongtai Jinai’er Lithium Resources.

Regarding the question of “how the company’s salt lake lithium resource reserves have been calculated”, the company responded that the calculation was mainly based on the depth of groundwater and measuring the lithium content in the liquid. However, given that underground is rich in solid lithium ore resources, the actual reserves are far greater than the already-measured reserves.

When asked since the company has an in-house raw material factory, how many raw materials are for self-use and how many are for sale, the company answered that it has barely sold any of it in 2021, and the company's current lithium carbonate inventory is prepared for 160,000 mt of LFP in the near future, without intention of selling.

In response to "how much investment is needed to build 10,000 mt of lithium carbonate production capacity," the company replied that it would require approximately 590 million yuan, including power distribution facilities, hydropower facilities, and 9-kilometre input pipeline transported brine to the workshop from salt pan. Salt pan construction is also expensive.

The Group Photo

At the end of the tour visit, SMM, together with the delegation and the management from Dongtai Jinai’er Lithium Resources took a group photo as the visit has brought deeper cooperation and friendship and on the basis of which there will be deeper exchanges and cooperation in the future.  

Through this visit, SMM and lithium downstream company representatives have gained a deeper understanding of the products, technologies, and company development of Dongtai Jinai’er Lithium Resources, as well as the market status, development trends, and problems of the lithium industry. SMM will continue to deepen cooperation with major companies to achieve complementary advantages and jointly promote the development of China’s lithium industry. 

Special thanks to: Jiangxi Longente Environmental Protection Equipment Co., Ltd., Binteer Control Equipment Co., Ltd., Hangzhou Shangtuo Environmental Technology Co., Ltd., Xiangtan Huibo Centrifuge Co., Ltd., and Zhejiang Dongou Filter Manufacturing Co., Ltd.