[2020.07.20 Morning meeting Summary of Cobalt Lithium New Energy] Cobalt salt price has an obvious upward trend and it is difficult to raise the price of ternary materials.

SMM, July 20:

Battery terminal market:

In terms of the power market, the total sales of the top 10 new power car companies in the first half of 2020 were 45795, accounting for 14.1% of China's total new energy vehicle sales, up from 11.7% in January. Xilai Automobile sales ranking is also gradually squeezed into the top five, Xiaopeng car and ideal car sales are also slowly ranked in the top 10. The successive deliveries of new models EC6 and Xiaopeng's P7 in the second half of the year are expected to continue to increase the sales of new power car companies or curb Tesla's growth momentum.

Price of upstream raw materials:

Cobalt: the import coefficient of cobalt raw materials has increased, and the epidemic situation in Africa is not optimistic. Terminal demand is gradually picking up, downstream procurement is temporarily more wait-and-see, procurement sporadic. The quotation of upstream cobalt salt, cobalt tetroxide and ternary precursor has been raised, and the price of a few transaction orders has risen slightly. Considering the instability of cobalt raw material supply and rising costs, the prices of cobalt series smelting products may hit bottom and rebound, but it will take time for downstream acceptance, and the prices of cobalt salt and cobalt tetroxide will rise slowly.

Lithium: industrial carbon market shipments are still tight, today some manufacturers continue to try to raise prices, the upstream short-term price will is strong. In terms of the current supply and demand structure of lithium carbonate, both upstream and downstream are still cautious about the long-term price trend, and the market pricing is still in the game. Lithium hydroxide has fewer spot transactions in the current market, and the concentration of supply and demand is relatively high. First-line suppliers are optimistic about the expectation of lithium hydroxide demand in the future, and at present they are mainly willing to raise prices; second-and third-line suppliers still need to enter more supply chain systems at present, and their bargaining power is weaker than that of buyers.

Positive materials and precursors: in terms of ternary materials and precursors, the trading volume was small last week, the downstream inquiry frequency became higher, the rising trend of raw material prices was obvious, and the precursors and ternary material enterprises were still playing games with the downstream. At present, the battery factory has strong bargaining power, and it is slightly difficult for the prices of ternary materials and precursors to rise.

Nickel: although there is a large increase in sales of new energy vehicles in Europe and the United States recently, due to the large inventory of battery factories in the first half of the year and the recent elimination phase, the order situation of the precursor factory has not been greatly improved, and the price of the precursor is still at a low level. Nickel sulfate intends to follow the rising period of nickel in the near future, which may lead to a short-term rise in the price of precursors.

News:

1. [Wanxiang 123% Volkswagen Power Battery supplier order size is more than 10 billion] it is learned that Wanxiang 123, a subsidiary of Wanxiang Group, has been identified as a power battery supplier for Volkswagen Group in China, with an order size of more than 10 billion yuan. Volkswagen said the day before that, "in addition to Ningde Times and Guoxuan Hi-Tech, there is also a power battery manufacturer under certification."

2. [Guoxuan High-tech Project with an annual output of 30,000 tons settled in Lujiang] yesterday morning, Hefei Guoxuan Battery material Co., Ltd., a subsidiary of Guoxuan Hi-Tech, held a signing ceremony with the management committee of Lujiang High-tech Industrial Development Zone in Hefei. Hefei Guoxuan annual output of 30000 tons of high-nickel ternary cathode material project officially landed in Lujiang. This marks the official launch of a major project designated by Volkswagen since it bought a stake in Guoxuan. The construction period of the project is 36 months. at present, construction drawing design, equipment selection and bidding are being carried out, and it is expected to be put into trial operation at the beginning of 2023.

3. [Greenbeauty: the subsidiary plans to invest 528 million yuan in the construction of a new energy high-value recycling project] recently, the company's wholly-owned subsidiary, Greengmei (Wuxi) Energy Materials Co., Ltd. (hereinafter referred to as "Wuxi Greenmei" or "Party B") and Wuxi Airport Economic Development Zone Management Committee (hereinafter referred to as "Wuxi Airport Economic Development Zone Management Committee" or "Party A") signed investment in new energy high-value recycling projects. The project invests 528 million yuan to form an industrial scale of high-value recycling of 100000 new energy vehicles per year, high-value recycling of 100000 sets of power battery packs per year, and a research and development platform for an engineering research center for high-value utilization of power batteries and new energy vehicles in Jiangsu Province. to build an industrial demonstration base and engineering technology research center for green recycling of power batteries and new energy vehicles in Jiangsu Province. It has become the world's advanced recycling and green disposal center for power batteries and new energy vehicles. Party B plans to start construction of the project before October 2020 and is expected to be completed and put into production by September 2022.

SMM battery materials research team

Qin Jingjing 021 Murray 51666828

Mei Wang Qin 021 Mui 51666759

Huo Yuan 021 Murray 51666898