SHANGHAI, Jul 28 (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 Qinghai HXR Lithium Tech Ltd.
SMM, together with the delegation, visited the Qinghai HXR Lithium Tech on July 22, who received warm reception from Feng Lihua, company director, Zhao Mingxing, vice president of production and Zhao Rong, vice president of supply and marketing. To begin with, the company introduced its business development.
Founded in March 2014, Qinghai HXR Lithium Tech is an enterprise engaged in the comprehensive utilisation of salt lake resources and technology R&D, with a registered capital of 65.193 million yuan. The company operates a major lithium carbonate project with annual output of 20,000 mt, which established in July 2015 and commissioned production in November 2017. The main products include industrial-grade lithium carbonate, lithium phosphate and magnesium hydroxide.
In line with the national strategy and Lithium Battery Initiation in Qinghai, this project follows the global development trend of NEVs, and applies separator process to separate lithium and magnesium. It has also successfully developed proprietary technology regarding deep separation of salt lake brine.
The delegation visited the factory of Qinghai HXR Lithium Tech to gain insights into the production process and product quality of the company's lithium carbonate among others.
Representatives of SMM and lithium downstream enterprises conducted in-depth exchanges on the core competitiveness and development plans of Qinghai HXR Lithium Tech.
Regarding the question of "what grades are your company's products", the company responded that their products have been produced in accordance with the industrial standard, and the main content of lithium carbonate can reach 99.5%. Some boron and magnetic substances are below the standard, and the chlorine content is sometimes unstable, but it can basically be defined as quasi battery-grade lithium carbonate.
In response to “If the company’s products are sold through distributors or directly to users", the company replied that their products are directly sold to all participants in the sector. The actual output stands at about 400 mt per month. But the factory is not running at full capacity due to insufficient raw materials.
When asked “Is there a salt field since the company has completed drilling", the company answered that it has 394 square kilometres of salt fields, which has been exposed for one and a half years and the specific reserves are currently being explored as that contains deep brine. Generally speaking, it will take three years to expose after the raw brine is drawn out.
The Group Photo
At the end of the tour visit, SMM, together with the delegation and the management from Qinghai HXR Lithium Tech 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 Qinghai HXR Lithium Tech, 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.