In a single day, the performance of four lithium power companies reached 2021 yuan. Huayou Cobalt Industry pulled up the daily limit, while its net profit rose by more than 500%.

SMM January 12: last night, Tibetan Mining, Huayou Cobalt, Tianhua Chaojing and German Nano and other lithium industry chain-related enterprises have issued their 2021 performance pre-increase announcement. As we all know, 2021 is a year of explosive and rapid development of lithium power, and the prices of lithium and lithium-related products such as lithium salt have refreshed three-year record highs. Driven by this situation, lithium-related industry chain enterprises have also benefited a lot in the past year.

Prior to this, many enterprises, including Rongbai Technology, Shida Shenghua, Anada, Bertre, Enjie shares, and so on, have reported the good news one after another, but now, four more industrial chain enterprises have joined the ranks of celebrations. Zangge Mining announced that its net profit in 2021 is expected to reach 14-1.45 billion yuan, an increase of 511.65% to 533.5% from a year earlier. As for the reasons for the change in the company's performance, Zangge Mining said that, on the one hand, during the reporting period, the sales price of potassium chloride of Golmud Zangge Potash Co., Ltd., a subsidiary of the company, increased compared with the same period last year; on the other hand, the sales volume and sales price of lithium carbonate of the company's secondary subsidiary Golmud Zangge Lithium Industry Co., Ltd. increased sharply compared with the same period last year, which contributed to an increase in operating income and profit of the company.

Public data show that Zangge Mining is a resource-based potassium chloride and lithium carbonate production enterprise based on the potash resources of Chaerhan Salt Lake in Qinghai Province. The lithium ion content in the old brine of Chaerhan Salt Lake is relatively low, and it is the largest soluble potassium magnesium salt deposit in China, and it is also one of the large salt lake deposits in the world. Relying on this salt lake, the company produces battery-grade lithium carbonate for export.

As a dust-proof performance in 2021, battery-grade lithium carbonate won the limelight by virtue of its soaring price in 2021. According to the historical price of SMM, as of December 31, 2021, the average spot price of domestic battery-grade lithium carbonate was 275000 yuan / ton, an increase of 418.87% during the year.

"Click to view the historical price of SMM Metals.

SMM believes that from 2021 to 2022, China's lithium carbonate supply will be limited by overseas resource capacity, and there will be a supply gap of about 7% in 2022. The annual average price will significantly rise to about 280000 yuan / ton, and the high price may reach about 350000 yuan / ton.

For Huayou cobalt, its net profit in 2021 is expected to remain at 3.7 billion yuan to 4.2 billion yuan, up 217.64% 260.56% from the same period last year. As for the reasons for the substantial increase in performance, Huayou Cobalt explained that the company's demand for new energy lithium materials continued to grow rapidly in 2021, the production and sales of the company's main products increased, product sales prices also continued to rise, and profitability increased significantly.

Stimulated by this news, Huayou Cobalt opened today and rose rapidly by the daily limit, with a share price of 103.72 yuan per share.

Tianhua, which has repeatedly distributed lithium resources, has also performed very well in 2021. Tianhua Super net estimates that the company's net profit in 2021 is expected to reach 8.9 to 940 million yuan, an increase of 211.20% and 228.68% over the same period last year. As for the reasons for the performance changes, Tianhua Chaojing said that during the reporting period, with the rapid development of the new energy vehicle industry, the demand for lithium materials was relatively strong. Yibin Tianyi Lithium Industry Science and Technology Co., Ltd. has made a great contribution to the consolidation of the lithium materials project, and the company's net profit has increased compared with the same period last year.

According to public data, Tianyi lithium industry is mainly engaged in the raising, processing and sales of lithium electricity-related materials, battery-grade lithium carbonate, lithium hydroxide and lithium metal. Previously, Tianhua Chaojing also said that the first phase of Tianyi lithium industry's annual production of 20,000 tons of battery-grade lithium hydroxide project was put into production in 2020, and mass production and shipment have been achieved in the first half of 2021. Affected by the high demeanor of the industry, production and sales are booming. As early as April 2021, Tianhua Super Clean began the second phase of battery-grade lithium hydroxide construction project. After the second phase of the project reaches production, the total production capacity of lithium hydroxide in Tianyi lithium industry will reach 45000 tons / year. At present, the project is in progress in an orderly manner.

Looking back on the past year, the price increase of battery-grade lithium hydroxide is not as high as that of lithium carbonate, but it is also as high as 349.49%. And recently, under the background of the rising price of lithium carbonate, lithium hydroxide has a strong rising sentiment. As of January 11, battery-grade lithium hydroxide has risen to 253500 yuan / ton. At present, some enterprises are still actively preparing goods, and it is expected that the transaction price of lithium hydroxide will continue to rise sharply. "View details

"Click to view the spot market of SMM new energy products.

German Nano issued a performance forecast for 2021, saying that the company's net profit belonging to shareholders of listed companies in 2021 is expected to reach 7.6-830 million yuan, a year-on-year turnaround from losses to profits in the same period in 2020. As for the reasons for the changes in the company's performance, German Nano said that during the reporting period, the company's new production capacity was released, and production and sales increased significantly compared with 2020; the rising prices of upstream raw materials and tight supply and demand in the lithium iron phosphate market have led to a rise in the price of the company's products. At the same time, thanks to the effective promotion of the company's cost control and the emergence of economies of scale, the company's profitability has been greatly improved compared with 2020.

In 2021, in lithium carbonate, lithium hydroxide and other rising prices of colleagues, power lithium iron phosphate also ushered in a wave of price increases. As of December 31, 2021, the average spot price of power lithium iron phosphate was 109000 yuan / ton, an increase of 186.84% over the beginning of the year, and the price was the highest in the past three years. According to SMM, China's production of lithium iron phosphate in 2021 totaled 410000 tons, up 179 per cent from a year earlier. Mainly due to the outbreak of terminal demand in the new energy vehicle market, the proportion of lithium iron phosphate materials in battery applications continues to increase, replacing ternary lithium manganate and lithium manganate. SMM expects lithium iron phosphate production to reach 698000 tons in 2022, an increase of 70 per cent over the same period last year.

For the future trend of lithium iron phosphate, SMM believes that due to the slow release of capacity at the upstream lithium mine end and the accelerated pace of production expansion downstream, the supply gap of lithium salt may increase to 49000 tons in 2022, which may push up the price of lithium salt and push up the manufacturing cost of lithium iron phosphate. "View details