The price of cobalt and lithium continues to rise. Tianqi is expected to make a net profit of over 144 million in the first three quarters.

On the evening of October 13, Tianqi (002009) disclosed its performance forecast that the company expects the first three quarters of 2021 net profit to be 144 million yuan to 149 million yuan, an increase of 170.52% to 179.91% over the same period last year. Among them, the net profit for the third quarter is expected to be 66 million yuan to 71 million yuan, an increase of 57.51% and 69.44% over the same period last year.

Tianqi shares said that benefiting from the development of the domestic new energy automobile industry, the strong demand for power battery materials led to a continuous rise in the price of cobalt, lithium and other metals, increasing the company's gross profit space. In addition, during the reporting period, the company's core subsidiary Jiangxi Tianqi Jintai Pavilion Cobalt Co., Ltd. continued to optimize product structure and expand production capacity; core subsidiary Ganzhou Tianqi Lithium Industrial Co., Ltd. the production capacity of lithium carbonate was further released, product sales increased significantly, further thickening the company's profits.

It is understood that in the third quarter, Tianqi began to accelerate the construction of lithium recycling system and further expand production capacity. On June 28th, the company announced that it would invest 5 billion yuan to form a production project with an annual production capacity of 30, 000 tons of ternary precursors and 12000 tons of battery-grade lithium carbonate dominated by waste lithium battery raw materials in the next five years.

On August 17th, Tianqi announced that the total investment of its wholly-owned subsidiary Jintai Pavilion and its subsidiary Ruibo Regeneration Plan does not exceed 440 million yuan to carry out the technical renovation project of comprehensive utilization and production expansion of waste lithium batteries in Longnan Economic Development District. After the completion of the project, Ruibo Regeneration will achieve an annual output of 20000 tons of ternary battery powder, which is to be put into production in Jintai Pavilion. Jintai Pavilion will increase its annual production capacity of 7300 tons of battery-grade cobalt sulfate, 18700 tons of battery-grade nickel sulfate, 8600 tons of battery-grade manganese sulfate and 3000 tons of lithium carbonate, resulting in an annual production capacity of 50, 000 tons of waste lithium batteries and comprehensive recycling of valuable metals such as nickel, cobalt, manganese, lithium and copper in waste lithium batteries.

In addition, the battery network learned that since the beginning of this year, Tianqi shares have also continuously won equipment orders from many new energy vehicle manufacturers, such as BYD, ideal Automobile, and so on, and the announced order amount has exceeded 500 million yuan.