Lithium iron phosphate wins the chase! 350 billion bibcock cross-border entry into the Bureau of the three major 10 billion projects have been finalized!

According to the data, lithium iron phosphate batteries are expected to account for more than 40% of the power market by the end of this year, and shipments are expected to grow by more than 200% in 2021 compared with the same period last year.

Lithium iron phosphate is powerful, and the high demeanor of the market attracts all kinds of capital to pour in.

350 billion bibcock joined the Bureau across the border.

Recently, the Management Committee of Meishan High-tech Industrial Park announced for the first time the environmental impact assessment of Wanhua Chemical (Sichuan) Co., Ltd. on the integration project of lithium iron phosphate cathode materials with an annual output of 50,000 tons. The project includes 50,000 tons / year of iron phosphate and 50,000 tons / year of lithium iron phosphate.

Wanhua Chemical, formerly a tannery, has undergone a transformation. With an annual compound growth rate of more than 30%, Wanhua Chemical has counterattacked into a chemical giant that can match Germany's BASF. Its business covers four major industrial clusters: polyurethane, petrochemical, fine chemicals and emerging materials. The main industries served include: life and home, sports and leisure, automobile and transportation, construction industry, electronics and electrical, personal care and green energy and so on.

In the first half of this year, Wanhua Chemical achieved an operating income of 67.657 billion yuan, up 118.91% from the same period last year, while the net profit belonging to shareholders of listed companies was 13.53 billion yuan, up 377.21% from the same period last year.

In fact, Wanhua Chemical has already cut into the field of lithium materials. Last April, Wanhua Chemical took a 100% stake in Zhuoneng lithium battery.

After the acquisition of lithium materials, Wanhua Chemical began to expand the production capacity of ternary cathode materials and invested 1.16 billion yuan in the construction of 10, 000 tons of ternary cathode materials for lithium batteries last year, which is expected to be completed and put into production by the end of 2021.

From the perspective of layout logic, Wanhua Chemical chooses to enter the field of lithium materials, which is conducive to expanding the diversified product portfolio and accelerating the strategic need to promote the company's transformation to the chemical new materials industry.

According to the current market environment, Wanhua Chemical chooses lithium iron phosphate as part of its new business at this time, and it still has a chance to taste the industry dividend. However, according to the current market capacity planning, as well as the frequency of capital inflows, everything is not yet certain.

As of September 17, Wanhua Chemical closed at 112.03 yuan per share, up 0.58 yuan per share, or 0.52%, with a total market capitalization of 351.7 billion yuan.

Lithium iron phosphate battery takes advantage of the victory

According to data from the China Automotive Power Battery Innovation Alliance, in May this year, domestic production of lithium iron phosphate batteries reached 8.8GWh, an increase of 317 percent over the same period last year, accounting for 64 percent of the total output, surpassing 5.0GWhof ternary batteries for the first time. In the previous month, lithium iron phosphate batteries totaled 29.9GWh. accounting for 50% of the total output, accounting for 50% of the total output.

Since then, lithium iron phosphate batteries have opened the way to "rampant" ternary batteries.

In the following June to August, the output of lithium iron phosphate batteries is higher than that of ternary batteries, so it can be predicted that the output of lithium iron phosphate batteries will exceed that of ternary batteries in 2021.

In terms of loading capacity, in July, the installed capacity of lithium iron phosphate batteries exceeded that of ternary batteries for the first time in nearly three years. In August, the ternary battery was loaded with 5.3GWhh, down 2.1% from the previous month; the lithium iron phosphate battery was loaded with 7.2GWhh, up 24.4% from the previous month.

This shows that the lithium iron phosphate battery will further develop in the second half of the year, and the installed capacity, output and growth rate will greatly catch up with that of the ternary battery.

In addition to the two major advantages of lower raw material costs and higher safety, advances in technology and the increase in the number of lithium iron battery models have contributed to the overtaking of lithium iron phosphate batteries.

On the technical level, the mainstream battery companies represented by CATL, BYD and Guoxuan Hi-Tech have respectively developed CTP, blade and JTM technology to improve the lack of battery life of iron-lithium batteries.

In terms of vehicle route selection, data show that at present, mainframe factories including BYD, Tesla, BAIC, Guangzhou Automobile, Great Wall, Dongfeng, SAIC, Chery, Changan, Jianghuai, Hezhong, Xiaopeng, Zero run, etc., have all launched the main models of lithium iron phosphate battery version, while the iron lithium version will be released centrally in the second half of the year, and most of them are popular throughout the year. For the installed capacity of lithium iron phosphate battery to further increase or even catch up with and surpass the ternary to expand the competitive advantage.

In addition, the market for small power (including shared motorcycles and power exchange) in 2020 is driven by both export and domestic demand, of which iron-lithium batteries account for about 30%.

At the same time, driven by the improvement of foreign home storage market and base station side energy storage shipments, energy storage lithium battery shipments increased by more than 50% year on year, basically using iron lithium batteries.

Driven by multiple favorable factors, the market space of lithium iron phosphate battery has been further opened, and the international battery giants have also felt a certain degree of pressure, thus re-examining the technology of lithium iron phosphate battery.

South Korean media THE ELEC reported that LG Energy, which specializes in ternary technology, began developing lithium iron phosphate battery technology at Daejeon Laboratory in South Korea at the end of last year, and is expected to build a pilot line in 2022 at the earliest.

In addition, LG Chemistry, the parent company of LG Energy, will also be involved in the lithium iron phosphate battery business and may set up a joint venture with its Chinese partner to supply LG Energy with raw materials for the production of lithium iron phosphate batteries.

Three tens of billions of projects hit the ground

Lithium iron phosphate battery loading increased rapidly, driving up the market price of lithium iron phosphate. According to the spot quotation of SMM, as of September 17, the average price of domestic power lithium iron phosphate is 66000 yuan / ton.

Under the exuberant demand of the market, a number of enterprises have announced the layout of lithium iron phosphate projects.

Chuan Heng co., Ltd.

On September 16, Chuanheng shares announced that the company intends to sign a "Project Investment Cooperation Agreement" with the people's Government of Fuquan City to invest in the construction of a "mineralized integrated" new energy material recycling industry project in Fuquan City.

With a total investment of 10 billion yuan, the project will be built in two phases, including a total of 800000 tons / year battery iron phosphate production line and 300000 tons / year battery-grade iron phosphate production line (including the previously announced 100000 tons / year iron phosphate project). And 40, 000 tons / year lithium hexafluorophosphate project.

Among them, the project includes the 500000 ton / year iron phosphate project that Chuanheng has agreed with Guoxuan Group to build.

Chuan Heng Co., Ltd. has formed a phosphorus chemical circular economy industry group of mining, phosphate production, phosphorus chemical technology innovation, development and utilization of associated resources, phosphogypsum building materials, phosphorus nutrition technical services and product sales. The production and marketing capacity is more than 600000 tons / year.

According to the semi-annual report, Chuanheng shares achieved a total operating income of 1.01 billion yuan in the first half of the year, an increase of 25% over the same period last year, and a net profit of 100 million yuan, an increase of 26.4%.

At the same time, the report points out that Chuanheng completed the acquisition of the mining rights and related assets of Xinqiao Phosphate Mine and Jigongling Phosphate Mine, and directly held three mining rights of Xiaoba Phosphate Mine, Xinqiao Phosphate Mine and Jigongling Phosphate Mine through its subsidiary Fulin Mining, with a total recoverable reserves of about 160 million tons. Xiaoba Phosphate Mine and Xinqiao Phosphate Mine can produce 3 million tons of phosphate ore per year.

In addition, Chuanheng shares in Tianyi Mining, a subsidiary of Tianyi Mining, holds mining rights of about 370 million tons of Laohudong phosphate rock, with a design production scale of 5 million tons per year, and infrastructure construction is under way.

Bangsheng Group

Recently, Hunan Bangsheng Industrial Holdings Group Co., Ltd. (hereinafter referred to as "Bangsheng Group") signed a contract with Ningxiang High-tech Zone to settle down the lithium iron phosphate project, with a total investment of 12 billion yuan, to build an annual output of 200000 tons of lithium iron phosphate project, which will have 40 production lines.

The project has all-round and in-depth cooperation with Central South University, and the product market is mainly aimed at Ningde era, BYD and other domestic top battery enterprises. After the completion of the project, the annual output value is expected to be 10 billion yuan.

Bangsheng Group was founded in 1998, mainly engaged in real estate development, large-scale wholesale market development and operation, hotel management, logistics center, cultural tourism and other projects investment and construction, layout of lithium iron phosphate project, is the first step of the group's industrial transformation.

Xiamen tungsten new energy

On the evening of September 16, Xiamen Tungsten Xineng announced that the company and Ya'an Economic Development Zone signed the "letter of intent for Lithium Ion cathode material Project". The company plans to invest in the construction of lithium ion cathode material project in Ya'an Economic Development Zone, and the investment intention is expected to be no less than 10 billion yuan.

According to the letter of intent, the project intends to invest 100000 tons of lithium iron phosphate and 60, 000 tons of ternary materials. This is also a big effort to expand production at the level of 10 billion that Xia Tungsten Xinneng landed on the Kechuang board in just over a month.

Xiamen tungsten Xinneng relies on the parent company Xiamen tungsten industry, mainly engaged in lithium ion battery cathode materials, customer structure, in 3C lithium battery field, including ATL, Samsung SDI, LGC, Murata, BYD, Xin Wanda, Zhuhai Guanyu, etc.; in the field of power lithium battery, including BYD, Panasonic, Ningde Times, AVIC Lithium and Guoxuan Hi-Tech, etc.

Xia Tungsten Xinneng pointed out that this letter of intent is only a document of intentional cooperation between both parties, and there is uncertainty in its specific implementation, and this letter of intent involves the phased implementation of the project. it does not have a significant impact on the company and Xiamen tungsten Xinneng's total assets, net assets, operating income, net profit and other financial indicators this year.

It is worth noting that as of December 31, 2020, the monetary fund balance of Xia Tungsten Xineng is 278 million yuan, and the estimated total investment of 10 billion yuan in this letter of intent is much higher than the current book capital level of the company.

Summary

The industrial chain of lithium phosphate battery is phosphate rock-industrial grade phosphoric acid / monoammonium phosphate-iron phosphate-lithium iron phosphate cathode-iron lithium battery.

Based on this, making use of the original phosphate rock resources of the enterprise and the complete integrated industrial chain of phosphorus and chemical industry, the cross-border investment layout of iron phosphate and lithium iron phosphate material project has become the common choice for the transformation and upgrading of many chemical enterprises.

Phosphorus chemical enterprises, in addition to Chuanheng shares, including Chuanfa Dragon Python, Longji Technology, Chuanjinuo, Xinyangfeng and other enterprises have announced cross-border construction of iron phosphate, lithium iron phosphate material projects.

In terms of titanium dioxide enterprises, Longbai Group, medium Nuclear Titanium dioxide, Anada and other enterprises have also announced cross-border investment in iron phosphate and lithium iron phosphate projects.

With the increase of cross-border players, the market will inevitably face more fierce competition, but battery enterprises and material enterprises have formed a "first-mover" advantage in the coordination of products, technology and industrial chain. the first thing new entrants have to face is to be "selected".

More importantly, large-scale production expansion will inevitably lead to overcapacity, and it is not clear whether cross-border companies can get a piece of the pie.