Longbai Group strengthens the integrated production of titanium products and lithium materials.

On February 20, Longbai Group announced that it had signed a strategic cooperation framework agreement with the second Geology and Mineral Resources investigation Institute of Henan Geology and Mineral Exploration and Development Bureau (hereinafter referred to as the second Institute). Extensive cooperation will be carried out in the integration, reserve, exploration and development of titanium, zirconium, graphite, lithium and other mineral resources at home and abroad.

It is reported that the second Institute has technical and talent advantages in geological prospecting, geological services, geological science and technology, as well as related environmental geology, agricultural geology, urban geology and so on.

Longbai Group said that the cooperation between the company and the second Institute in the integration, reserve, exploration and development of titanium, zirconium, graphite, lithium and other mineral resources at home and abroad is an important measure for the company to ensure the supply of raw materials and improve the self-sufficiency rate of raw materials. it is conducive to further strengthening the company's vertical and vertical integration production mode. At the same time, it will promote the development of the mining industry and related industries, promote the sustained, rapid and healthy development of both sides, and enhance the core competitiveness of both sides.

He Miao, partner of Zhengzhou Siyuhang Enterprise Management Consulting Co., Ltd., said in an interview that the cooperation between Longbai Group and the second Institute, on the one hand, can make use of the technical advantages of the second Institute in the field of geological exploration. on the premise of effectively ensuring the company's mineral safety production, improve mining efficiency, reduce mining risks, and save the cost loss caused by blind mining; On the other hand, considering that both Longbai Group and the second Institute have mining rights, the two sides can directly carry out mineral cooperation in the form of ownership transfer, which is also conducive to improving the production efficiency of the project.

Due to the rapid growth of downstream demand and epidemic situation, power restriction, environmental protection policy and other factors, Longbai Group's main products titanium products, lithium iron phosphate and graphite negative upstream raw materials titanium concentrate, lithium concentrate, graphite and other factors continue to be in short supply. In terms of titanium concentrate, Guotai Junan said that 90% of titanium concentrate is used in titanium dioxide, and China's titanium dioxide production from 2021 to 2023 is expected to grow by 5.7%, 8.7% and 9.5% year-on-year, leading to a continuous increase in demand for titanium concentrate. On the supply side, new capacity is scarce and start-up flexibility is limited. The global supply growth rate may be less than 4% from 2021 to 2023, and the domestic supply growth rate is expected to be less than 2% from 2021 to 2023. The supply constraint of titanium ore is becoming more and more obvious, and the gap between supply and demand is expected to persist in the next three years.

Zhanfei, an equity investment analyst at Zhengzhou Hongheng Investment Consulting Co., Ltd., said that at present, Longbai Group has an advantage in the integration of the titanium industry and the upstream and downstream of new energy materials. Prior to the substantial increase in profits of Longbai Group, it is not only the catalysis of downstream demand, but also benefited from the integrated production layout of the company. In view of the tight supply and rising prices, with the promotion of Longbai Group's capacity layout in titanium concentrate, especially in lithium ore and graphitization, while increasing the self-sufficiency rate of raw materials, the company's production costs will also be effectively reduced. Future profits are expected to be further improved.