Tianhua Chaojing plans to raise 780 million yuan to invest in the second phase of battery-grade lithium hydroxide project.

SMM: on the evening of December 2, Tianhua Super net disclosed the stock issuance plan to specific objects, the total number of non-public shares to no more than 35 specific investment objects shall not exceed 165 million shares, and the total amount of funds raised shall not exceed 780 million yuan. After deducting the issuance costs, the net funds raised will be used for the second phase of the battery-grade lithium hydroxide construction project.

According to the announcement, Tianhua Chaojing plans to invest in the second phase of battery-grade lithium hydroxide through its subsidiary Tianyi Lithium Industry, which was jointly funded by Tianhua Super Clean 2018 United Ningde Times (300750) and other companies. At present, Tianhua Chaojing and Ningde era own 68% and 15% of Tianyi Lithium respectively, making them the top two major shareholders of the latter.

The second phase of the battery-grade lithium hydroxide project is located in Jiangan County Industrial Park, Yibin City, Sichuan Province. It is a new project with a total investment of 920 million yuan.

According to the plan, Tianyi Lithium Industry previously invested in the "first phase of 20,000 tons of battery-grade lithium hydroxide construction project" will be officially put into production in December this year. On this basis, after the implementation of the fixed increase project, Tianyi Lithium Industry will increase its battery-grade lithium hydroxide production capacity by 25000 tons / year, with a total capacity of 45000 tons / year, with an average annual sales income of 1.124 billion yuan and a net profit of 144 million yuan. It will become a new profit growth point for Tianyi Ultra-clean in addition to the existing Static super-clean technology products and medical device products.

In addition, according to customs statistics, China imported 7.08 tons of lithium hydroxide in October 2020, the monthly import value was about 100000 US dollars, and the average monthly import price was 13518.36 US dollars / ton. According to customs statistics, China's export volume of lithium hydroxide in October 2020 was 5682.47 tons, the monthly export value was about 47.5 million US dollars, and the average monthly export price was 8358.78 US dollars / ton.

According to SMM data, the price of battery-grade lithium hydroxide has shown an overall downward trend since the end of March, and the price of battery-grade lithium hydroxide has remained at 48000 yuan / ton since the end of October, down 14.29% from the highest level since the beginning of the year. At present, there is no significant change in the cost support price of battery-grade lithium hydroxide, while lithium carbonate as the price center continues to rise, which also plays a partial supporting role in the price of lithium hydroxide. Lithium salt prices remained stable last week, some Sichuan enterprises currently quoted electricity hydrogen at 4.7-48000 yuan / ton, a small part of the transaction price is about 44000 yuan / ton. Inventory pressure at the end of the year is on the high side, or there may be a low price to go to the warehouse, and mainstream transaction prices are expected to fall low this week.

Although the price of battery-grade lithium hydroxide is in a downward cycle, a number of companies have announced project production or planned investment plans this year amid positive long-term demand:

On October 30, the commissioning ceremony of the Ganfeng lithium industry project with an annual production capacity of 50,000 tons of lithium hydroxide was held at the Mahon factory in Xinyu, Jiangxi province. The project covers an area of 292mu and the construction area is about 120000 square meters. after it is put into production, the Mahon plant will increase the annual production capacity of 50, 000 tons of battery-grade lithium hydroxide, with a total design capacity of 81000 tons, ranking first in the world.

On October 22nd, Weihua Company, through its wholly-owned subsidiary Suining Shengxin Lithium Industry Co., Ltd., plans to invest in the construction of a lithium hydroxide project with an annual production capacity of 30,000 tons in Shehong City, with a total investment of RMB 1.2 billion. The first phase of the lithium hydroxide project will start construction this year, and the first phase of construction investment will be RMB 850 million yuan.

On May 18, the official production ceremony of Ya'an Lithium Industry was held in Yahua Park, Ya'an Economic Development District, marking the official commissioning of the Ya'an Lithium Industry Project with an annual production capacity of 20,000 tons of lithium hydroxide.