Huayou Cobalt Secures 175,000 mt of Ternary Precursor Orders, Another Achievement in Its Vertically Integrated Business Layout

Published: Jan 05, 2023 16:17 (GMT+8)

Source: SMM

Save

SHANGHAI, Jan 5 (SMM) - Under a recently signed agreement, Huayou Cobalt and its subsidiary will supply 15,000 mt of ternary precursors to Zhejiang Puhua Energy Materials Co. from January 2023 to December 2025. Established on May 11, 2018, Zhejiang Puhua New Energy Materials is 9.55% owned by POSCO Holdings, 50.45% held by Pohang Chemical, and 40% held by Zhejiang Huayou New Energy Technology.

Meanwhile, Huayou Cobalt signed another agreement Pohang Chemical. According to the agreement, Huayou Cobalt and its subsidiary will supply 160,000 mt of ternary precursors to Pohang Chemical from January 2023 to December 2025.

Huayou Cobalt's lithium battery business layout is a vertically integrated one, covering multiple links in the industry chain, including cobalt, nickel and copper resources, cobalt salt, nickel sulphate, electro-deposit copper, ternary precursor, iron phosphate precursor, ternary cathode materials, as well as LFP. The current mainstream settlement scheme between ternary precursors and downstream customers is based on the market prices of nickel salt, cobalt salt, and manganese salt plus conversion margins. Therefore, Huayou Cobalt has competitive cost advantages, which could guarantee its profitability.

Market Market

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

2 hours ago

Solid-State Battery Next Decade Series, Part 6 of 9: Ternary Route May Become Great Again [SMM Analysis]

[SMM Analysis: Solid-State Battery Next Decade Series, 6 of 9: The Ternary Route May Become Great Again] Ternary has been structurally squeezed by LFP in the liquid lithium battery stage, making it difficult for its share to return to the mainstream. Solid-state batteries are catalyzing its "second positioning": high-nickel ternary, lithium-rich manganese-based materials are naturally compatible with solid-state systems, and solid-liquid batteries provide transitional growth. Scenarios such as eVTOL, humanoid robots, and high-end EVs, which have rigid demand for energy density and are price-insensitive, will become a solid foundation for the high-end specialized path of ternary.

2 hours ago

22 hours ago

UK E-Liquid Excise Duty Takes Effect October 1 at GBP 2.20 per 10ml, Tobacco Tax Also Raised

【UK E-Liquid Excise Duty Takes Effect, Tobacco Tax Raised Simultaneously】The UK's HM Revenue & Customs has announced that the e-liquid excise duty came into effect on October 1, 2026, at a rate of GBP 2.20 per 10ml, applying to all e-liquids produced or imported into the UK regardless of nicotine content, with the exception of goods held in duty suspension. Manufacturers, importers, and bonded warehouse operators must obtain HMRC approval; unauthorized production is illegal and subject to civil penalties, seizure of goods and equipment, or criminal prosecution. The accompanying fiscal mark regime is also mandatory from the same date, with transitional marks without digital elements permitted until December 31, 2026; new products must use digital fiscal marks from January 1, 2027, and existing unmarked stock in wholesale and retail may be sold until March 31, 2027. Cigarettes and other tobacco products received a one-off additional duty of GBP 2.20 per 100 sticks or per 50g on the same date, on top of the regular escalator. The measure is projected to generate over GBP 550 million annually by the 2030–31 fiscal year.

22 hours ago

South Korea to Fast-Track Approvals for Hyundai’s KRW 4 Trillion Ulsan EV Factory Conversion

On October 1, the South Korean government announced measures to accelerate approvals for Hyundai Motor’s approximately KRW 4 trillion project to convert existing Ulsan facilities into EV-focused factories. The project covers Ulsan Plant 1 and Line 2 of Plant 4. Environmental, traffic and disaster impact assessments will proceed alongside permitting, supported by a dedicated project manager. The government aims to shorten administrative procedures from more than three years to within one year. The measure supports an existing corporate investment rather than providing a new government subsidy.

22 hours ago