Exclusive: SMM's Lithium Battery Team Qinghai Field Trip--Zangge Lithium

SHANGHAI, Jul 28 (SMM) - The lithium battery industry is booming in 2021. The new energy industry is rising rapidly under the background of stimulus policies and the global electrification trend, driving the entire industry chain into a stage of vigorous development.

As one of the most important basic raw materials for new energy vehicles, lithium resources saw short supply and price increase at the end of 2020 and stable prices amid recovering supply in Q2 2021. The supply of lithium resources has become an important influencing factor for the future development of new energy. How will the customer base in the industry chain, including downstream precursors, materials, batteries, automobiles, and upstream nickel, cobalt and lithium raw material manufacturers, balance the increase in production and the supply of raw materials?

SMM has integrated the upstream and downstream enterprises in the lithium battery industry chain and conducted on-site surveys on lithium battery related companies.  

From July 19 to 23, SMM New Energy Division Director Wang Tian and marketing consultant Yu Lei led the SMM staff and members of the delegation to visit raw material enterprises of lithium battery industry in Qinghai, with the purpose of facilitating closer and in-depth cooperation as well as more effective and sustainable communications.

The delegation members come from Jiangxi Longente Environmental Protection Equipment Co., Ltd., Binteer Control Equipment Co., Ltd., Hangzhou Shangtuo Environmental Technology Co., Ltd., Xiangtan Huibo Centrifuge Co., Ltd., and Zhejiang Dongou Filter Manufacturing Co ., Ltd.

The fourth stop on July 21 - Zangge Lithium

About Zangge Lithium

Golmud Zangge Lithium was established in September 2017 at No. 15-02 South Kunlun Road, Golmud City, Qinghai Province. The business scope includes production and operation of lithium series products (with the exception of hazardous chemicals and products subject to special national regulations); R&D and consulting services of lithium extraction technologies from salt lakes; production and sales of graphene; development, research, production and sales of new energy storage materials.

Factory tour

SMM and members of the delegation visited the factory of Zangge Lithium to gain an in-depth understanding of the production process and product quality of the company's lithium salt products.

Technology Exchange

SMM and lithium downstream business representatives have conducted in-depth exchanges on the core competitiveness and future development plans of Zangge Lithium.

During the exchanges, Golmud Zangge Lithium first answered the question of "will there be significant supplies of lithium carbonate in Qinghai in the next five years". According to the company, total capacity of lithium carbonate in Qinghai stands at 130,000 mt currently, and is unlikely to exceed 200,000 mt in the next five years. Except for Chaerhan Salt Lake, where brine is mostly sufficient, supplies from other regions will be moderate. While Salt Lake Group can produce 300 million m³ of old brine every year.

And in response to the question of "why not continue to expand capacity", the company said that the brine is currently being recycled and its lithium content has been declining. However, it is not yet certain if lithium content will continue to decrease over the next ten years. At present, the company's lithium content from salt lakes is low, so the previously installed production line may not be applicable in the future. After comprehensive consideration, the company decided to build 10,000 mt capacity first, and may add another 10,000 mt in the future.

Lastly in answer to the question of "why your company uses adsorption method”, it said that because they use physical adsorption which utilises van der Waals force. Lithium ions will be absorbed through the difference between the internal and external solubility of the adsorbent. In addition, using tepid water at 30-40℃ will increase its adsorption efficiency, but only lithium ions can be adsorbed.

Group photo

After visiting the factory, the delegation took a group photo with the management of Zangge Lithium, as the visit has brought deeper cooperation and friendship and on the basis of which, there will be deeper exchanges and cooperation in the future.

Through this visit, SMM and lithium downstream company representatives have gained a deeper understanding of the products, technologies and company development of Zangge Lithium, as well as the market status, development trends and problems of the lithium industry. SMM will continue to deepen cooperation with major companies to achieve complementary advantages and jointly promote the development of China’s lithium industry.