[summary of the Internal Morning meeting of Cobalt Lithium New Energy] the demand of battery companies increases and the price of cobalt remains firm.

SMM, Oct. 29:

Battery terminal market:

In the power market, the demand for ternary batteries of head battery enterprises has recently increased by 20% Mel 30%. The production of iron-lithium batteries began to increase gradually in August and has maintained a steady growth rate. The scheduling of other second and third echelon battery companies also increased month-on-month, but the growth rate was not as fast as that of large companies. In the small power market, orders for electric two-wheelers peaked in October, but some battery companies switched from ternary batteries to lithium iron phosphate or lithium manganate batteries, resulting in a weakening demand for ternary batteries.

Price of upstream raw materials:

Cobalt: cobalt salt and tetra-cobalt rose slightly, cobalt sulfate quoted 5.5-56000 yuan / ton, cobalt chloride 66000 yuan / ton, cobalt tetroxide 215000 yuan / ton, downstream wait-and-see majority, a few transactions began to appear. The inventory of low-cost raw materials and products in the smelter is gradually emptied, the price of cobalt raw materials is strong in the short term, the structure of cost support is in short supply, and the prices of cobalt salt and cobalt tetroxide are relatively strong. From the point of view of the traditional industry, the spot quotation of electrolytic cobalt is stronger this week, while the quotation of cobalt powder and cobalt carbonate has been lowered, but the transactions are sporadic.

Lithium: lithium carbonate has a large trading volume this week, and the spot price is mainly around 42000 yuan / ton. most Sichuan and Jiangxi regions plan to raise prices to 43000 yuan / ton in November, and prices are expected to rise slightly next week. In Qinghai, the price of industrial-grade lithium carbonate has been raised by 1000 yuan / ton, while the mainstream transaction price is between 3.5 yuan and 38000 yuan / ton, and the supply continues to be tight. Downstream demand for lithium iron phosphate continued to increase, and some Jiangxi plants adjusted their quotations for electric carbon to 39000 yuan / ton. The price of battery-grade lithium hydroxide has been reduced by 1000 yuan / ton this week, the domestic ternary demand for high nickel is weak, the price of lithium hydroxide is difficult to support, and some manufacturers at the low end have not yet completed the downstream certification, but they are approaching the cost line, and prices are expected to remain stable next week.

Cathode materials and precursors: this week entered the procurement peak, the power market, large factories mostly use monthly average prices, considering that the price fluctuation of cobalt and nickel this month is small, the prices of ternary materials and precursors are basically stable. From the point of view of the small power and digital market, due to the decline in downstream orders, serious terminal price reduction, and intensified market competition, the prices of ternary materials and precursors have dropped correspondingly. The price of ternary precursors is 77000 yuan / ton, and the price of ternary materials has fallen below 100000 yuan / ton again.

Nickel: yesterday, Shanghai nickel rose 5% to break through 125000 / ton, battery-grade nickel sulfate market quotation is still at 28000 / ton, turnover is still light this week, but downstream inquiry enthusiasm has increased to a certain extent. This week, the mainstream trading price in the market is still around 27500 / ton. In the later stage, it is concerned that if Shanghai nickel stands above the 120000 / ton mark, nickel sulfate may rise slightly under the push of cost.

News:

1. [the net profit of the first three quarters of the Ningde era is 3.375 billion yuan] on the evening of October 27th, the Ningde era released the third quarter report of 2020. In the first three quarters of this year, the company achieved operating income of 31.522 billion yuan, down 4.06% from the same period last year; net profit was 3.357 billion yuan, down 3.10% from the same period last year; of which, net profit in the third quarter was 1.42 billion yuan, up 4.24% from the same period last year.

2. [Toyota Panasonic Battery Joint Venture increases tenfold efficiency] Hiroaki Koda, president of Prime Planet Energy & Solutions, a battery joint venture between Toyota and Panasonic, said at a news conference that the company plans to increase the efficiency of its R & D and production processes tenfold in order to better compete with large Chinese companies.

3. [high safety and high performance BYD new electric vehicle platform] BYD is pre-developing the next generation of high-performance and high-safety pure electric platform, which will apply a large number of innovative technologies. It will give full play to the advantages of electric vehicles in space, drivability and intelligence, and reach the same level of fuel vehicles in terms of safety, cost and battery life. The first model based on the new platform will be released for the first time at the Shanghai Auto Show next year.

SMM battery materials research team

Huo Yuan 021-51666898

Mei Wangqin 021-51666759

Liu Xiaoyi 021-51666716

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