According to news from Huayou Cobalt Industry (603799), the opening ceremony of the integration project of 50, 000 tons of high-nickel power battery ternary cathode materials and 100000 tons of ternary precursor materials was held recently by Guangxi Bamo Technology Co., Ltd.
According to a previous announcement issued by Huayou Cobalt Industry, the annual production of 50, 000 tons of high-nickel power battery ternary cathode materials and 100000 tons of ternary precursor materials integration project is expected to have a total investment of 6.308 billion yuan, which is mainly composed of three parts. Specifically: the production line of high purity battery grade nickel sulfate with an annual output of 50,000 tons (metal), the production line of ternary precursor materials for high nickel power batteries with an annual output of 100000 tons, and the production line of ternary cathode materials for high nickel power batteries with an annual output of 50000 tons. The overall construction period of the project is 2 years.
Ping an Securities said that at present, the positive precursor projects being promoted and planned by Huayou Cobalt include the 50, 000-ton high-nickel power battery and 50, 000-ton high-performance power battery ternary positive material precursor project of Huayou New Energy and the 100000-ton Bamo precursor project in Guangxi. After the completion of the project, the production capacity of the positive precursor of the company will be greatly increased. In terms of cathode materials, with the commissioning of Bamo Chengdu project and the landing of Guangxi Bamo 50,000 ton cathode material project in the future, the company's cathode materials will also maintain rapid growth.
Behind the steady progress in production capacity is the strong support of orders. According to the analysis of Everbright Securities Research report, according to the agreement recently signed by Huayou Cobalt Industry, the total amount of ternary precursors will be supplied to three companies in the next four years from 2022 to 2025, about 64-690000 tons (not taking into account the maximum value of 415000 tons of precursors required by Rongbai technology in the agreement). The average annual supply is about 16-172500 tons / year. The company's existing production capacity of ternary precursors is 100000 tons / year, and will reach 175000 tons / year and 325000 tons / year respectively from 2022 to 2023. With its own ternary cathode of 43000 tons / year, the production capacity of ternary cathode from 2022 to 2023 will reach 93000 tons and 143000 tons / year, respectively. Considering the company's own use and supply to LG and Posco, the remaining ternary precursor production capacity is basically underwritten.
