A key step has been taken in the “nationalization of lithium mines” by a large mineral country.
Chile will promote the nationalization of lithium mines
Chile’s constitutional assembly preliminarily approved a proposal this week, which was submitted and approved by the parliamentary Environment Committee, aiming to promote the nationalization of copper, lithium and other strategic assets.
This shows that the nationalization of lithium and other mineral resources in Chile has taken a key step. In December 2021, Gabriel borridge was elected the new president of Chile. Borrich supports the nationalization of lithium mines and advocates the establishment of state-owned lithium enterprises. He will take office in March this year.
Chile is one of the countries with the richest lithium resources in the world. According to the data of the US Geological Survey, in 2020, Chile identified 9 million tons of lithium resources, ranking third in the world, accounting for 11% of the global lithium resources. Earlier, Chile decided to pay attention to the border because of the sharp increase in the number of cases caused by coronavirus, resulting in the rapid rise of copper and lithium prices.
The value of lithium ore is becoming increasingly prominent, and the tendency of countries to set a threshold for lithium ore mining is becoming clearer and clearer. Recently, according to the Rio times, Argentina, Bolivia and Chile are discussing the establishment of an organization of lithium producing countries similar to the organization of Petroleum Exporting Countries . In 2020, the lithium resources of Argentina, Bolivia and Chile accounted for about 60% of the world.
Northeast Securities Co.Ltd(000686) according to the research report, if the idea of the organization of lithium producing countries is really implemented: on the one hand, the concentration of lithium supply will be greatly improved, and the industry pattern is expected to be further optimized; On the other hand, under the guidance of the government, the behavior of enterprises will become more rational and the price of lithium will be more stable.
lithium ore supply side continues to tighten
With the rapid development of new energy vehicles, the demand for lithium carbonate has risen sharply. According to the data of Baichuan Yingfu, the consumption of lithium carbonate was 279000 tons in 2021, with a year-on-year increase of 44.79%; Lithium hydroxide consumption was 98500 tons, a year-on-year increase of 159.18%. Lithium carbonate has become the commodity with the largest increase since last year. The price of battery grade lithium carbonate has risen rapidly since the beginning of 2021, and has risen by 586.79% so far. The importance of lithium resources has become increasingly prominent.
Governments of various countries continued to be cautious about the exploitation of lithium resources. On January 20 local time, the Serbian government stopped Rio Tinto jadar lithium project for political and environmental reasons. Jadar is the largest green lithium mine project in Europe. According to Rio Tinto’s announcement, the lithium oxide resource of the project reached 2.48 million tons, and the original plan was to produce 58000 tons of battery grade lithium carbonate per year.
From the perspective of China, the inventory level of metal lithium and various lithium salts in China has continued to decline since 2021. According to the data of Baichuan Yingfu, as of January 21, 2022, the inventory of China’s lithium carbonate plant has continuously decreased from 11200 tons in July 2021 to 5000 tons, a decrease of 55.36% compared with the recent high. The supply side of lithium ore continues to tighten, the demand side is fast and large-scale, and the extreme imbalance between supply and demand has led to the rapid rise of prices.
the performance of lithium concept stocks increased significantly in 2021
According to the statistics of securities times · databao, there are 14 Listed Companies in A-Shares that hold and control lithium mines or have signed lithium mining contracts. In 2021, lithium concept stocks rose sharply, with an average increase of 163.64%. The cumulative increase of Jiangxi Special Electric Motor Co.Ltd(002176) , Tibet Mineral Development Co.Ltd(000762) , Qinghai Salt Lake Industry Co.Ltd(000792) exceeded 300%.
In terms of performance, benefiting from the good performance of lithium batteries in 2021, the profits of lithium mining concept stocks increased significantly in 2021. According to the published performance forecast, the net profit attributable to the parent company of 12 lithium ore concept stocks will double in 2021, and Chengxin Lithium Group Co.Ltd(002240) , Jiangxi Special Electric Motor Co.Ltd(002176) , Ganfeng Lithium Co.Ltd(002460) is expected to be the highest.
According to the performance forecast, the net profit attributable to the parent company is expected to reach 830-920 million yuan in 2021, with a year-on-year increase of 2954.3% – 3285.5%. According to the previous announcement, the subsidiary Zhiyuan lithium has built an annual capacity of 40000 tons of lithium salt (including 25000 tons of lithium carbonate and 15000 tons of lithium hydroxide); Suiningsheng’s new design capacity is 30000 tons of lithium salt per year, and the first phase of 20000 tons of lithium hydroxide project has been started at the end of 2020.
Northbound capital has continued to distribute lithium concept stocks this year. In terms of the net purchase volume in January, eight lithium concept stocks have been added by northbound capital, and the net purchase volume of Zijin Mining Group Company Limited(601899) , Qinghai Salt Lake Industry Co.Ltd(000792) , Ganfeng Lithium Co.Ltd(002460) ranks first, all exceeding 10 million shares.
Zijin Mining Group Company Limited(601899) recently announced that the company has completed the acquisition of Canadian new lithium company. The core asset of new lithium company is 3Q Salt Lake project, which is located in the famous “lithium triangle” in South America. According to the latest feasibility study, the total resource of lithium carbonate equivalent is about 7.63 million tons.
