Benefiting from the acceleration of downstream new energy vehicles, driving the overall growth of the power battery industry, the long-term Lithium Company (688779), which has just been listed on the market for a full month, has quickly opened the mode of production expansion.

In order to further consolidate the company's market position and meet the future market and development needs of related business, Hunan long-term Lithium New Energy Co., Ltd. (hereinafter referred to as "long-term new energy"), a wholly-owned subsidiary of the company, plans to invest in the second phase of the expansion project of automotive lithium battery cathode materials and build a production line of 40, 000 tons / year cathode materials, with a total investment of about 3.339 billion yuan. Construction is scheduled to begin at the end of January 2022 and put into production in October 2023.

It is reported that long-term Lithium is a high-tech enterprise mainly engaged in the research, development, production and sales of cathode materials for high-efficiency batteries, and is committed to providing cathode materials with high safety, high energy density and high cycle times for new energy batteries. The company's main products include ternary cathode materials and precursors, lithium cobalt oxide cathode materials, nodular nickel and so on.

According to the long-term lithium analysis, ternary batteries have natural advantages in energy density and low temperature performance, which has ushered in the explosive growth in recent years, but also led to the explosive growth of ternary cathode materials. After more than 10 years of accumulation, the company has become a major supplier in the field of ternary cathode materials. The company established a wholly-owned subsidiary long-term New Energy in 2019 and officially launched the cathode material expansion project located in Changsha High-tech Development Zone. The construction scale of the project is 80,000 t of cathode material for automotive lithium battery, which will be implemented in two phases. The first phase is to build a production line of 40,000 t. Since the fourth quarter of 2020, China's new energy vehicle market has gradually recovered from the epidemic, the production and sales of the company's main products have increased significantly, and continue to be in a state of full production and sales.

In terms of customers, long-term Lithium has successfully entered the supplier system of mainstream lithium battery manufacturers such as Ningde era, BYD, Yiwei Lithium Energy, Xinwanda and other mainstream lithium battery manufacturers in the field of ternary cathode materials. and stabilize and deepen customer cooperation through continuous technical optimization and product iteration.

What is noteworthy is that recently, Ningde Times has put forward a fixed increase of 58.2 billion to expand production, Xinwanda plans to build a power battery production base in Nanchang with 20 billion yuan, and BYD's sales of new energy vehicles exceeded 60, 000 in August, driving the demand for power batteries to continue to rise. even Yiwei Lithium Energy, which has always been a conservative development, has also issued frequent production expansion announcements this year.

In the context of large-scale production expansion of major customers, long-term Lithium said that the company's current production capacity is still unable to fully meet the actual needs of downstream customers. At present, the first phase of the project of expanding the production of cathode materials for lithium batteries for vehicles is progressing smoothly. In the face of the changes in market demand and combined with the production and operation of the company, actively promote the construction of the second phase of the automotive lithium battery cathode material expansion project and put into production as soon as possible, which is conducive to the need to stabilize the company's market position.

According to the long-term Lithium future development goal, from 2022 to 2025, the company plans to complete the project construction of 40 million tons of cathode materials, reaching a production capacity of 110000 tons, keeping the market share of power ternary materials first in the world (more than 20%), and timely developing other system cathode materials to form a product combination dominated by multi-materials, supplemented by manganese series, iron system and cobalt series, forming industry influence and competitiveness in digital and energy storage fields.