News Roundup for New Energy Market

SHANGHAI, Nov 8 (SMM) – A weekly update on the trending stories from the New Energy sector.

1. Shenzhen Chengxin Lithium Group (002240.SZ) announced that its subsidiary, Shengyi International, intends to purchase a 51% stake in MaxMind Hong Kong for $76.5 million. The subsidiary of MaxMind Hong Kong owns the mining rights for altogether 40 rare metal blocks with a total area of 2,637 hectares at the Sabi Star lithium-tantalum project in Zimbabwe. At present, Chengxin Lithium has explored five of the mining right blocks (covering an area of 116 hectares), with a cumulative total of 6.883 million mt of ore resources identified, including 1.231 million mt of proven resources, 2.534 million mt of controlled resources and 2.918 million mt of inferred resources.

Chengxin Lithium has expanded its value chain to the upstream lithium raw materials since 2019. The company has controlling stake in Jinchuan Aoyinuo Mining through its subsidiary Shengtun Lithium, giving it access to the exploring rights of Yelonggou spodumene mine and Taiyanghekou lithium polymetallic mine owned by Jinchuan Aoyinuo Mining. In 2021, the company invested in Qicheng Mining, allowing it to indirectly hold Murong lithium mine. It also signed lithium concentrate off-take agreement with AVZ and Galaxy Lithium. The Sabi Star lithium-tantalum project will provide more raw materials to support the company's lithium salt capacity expansions and reduce the risks brought by raw material supply uncertainty. However, as many of these resources are not available for mining yet, the company will continue to face resource shortages in the short term.

2. Reuters reported that SK Innovation's battery division SK On is developing lithium iron phosphate (LFP) batteries for electric vehicles.

Major global companies have attached increasing importance to LFP. In addition to SK On, another South Korean battery giant LG Energy Solution said last month that it would develop LFP batteries. CATL and BYD, who are the battery leaders in China, have also increased investment in LFP battery business. Earlier, under the NEV subsidy policy that is linked to battery energy density, the market share of LFP battery once fell to less than 30% as it has lower energy density than ternary battery. However, with shrinking NEV subsidies and rising raw material prices of lithium battery, LFP battery has become increasingly popular due to its relatively low prices and greater safety. It is expected that the proportion of LFP in motive power battery will continue to increase.

3. Electric car manufacturer Fisker said on November 2 that it had signed a battery supply agreement with Chinese battery manufacturer CATL for its flagship model Ocean electric SUV.

According to the agreement, CATL will provide Fisker with at least 5Gwh motive power batteries every year from 2023 to 2025, including nickel-cobalt-manganese lithium batteries and LFP batteries. According to Fisker’s CEO and Chairman Henrik Fisker, this type of battery pack will be applied to Ocean SUV that will be unveiled at the Los Angeles Auto Show on November 17 this year. By installing battery packs with different cathode materials, Ocean models have the ability to cater to different market segments, driving range, and price requirements.