On February 7, Lb Group Co.Ltd(002601) held the first extraordinary general meeting of shareholders in 2022, The meeting deliberated and adopted the proposal on formulating the salary management measures for the chairman of the board of directors, the chairman of the board of supervisors and senior managers, the proposal on adjusting the allowances for independent directors, non independent directors and supervisors of the company, and the proposal on investing in the construction of the upgrading and innovation project of 10000 tons of sponge titanium production line The proposal on investment and construction of 150000 tons of electronic grade lithium iron phosphate project and the proposal on investment and construction of 200000 tons of titanium dioxide powder post-treatment project.
vigorously promote the development of titanium dioxide and lithium battery materials
It is understood that in addition to the above three proposed projects, in the six months since August 2021, Lb Group Co.Ltd(002601) announced a total of 11 projects to be invested, with a total investment of 18.24 billion yuan. The number of projects is nearly twice that of all projects invested and constructed from 2014 to 2020, and the investment amount is more than twice. Both the number and total investment amount are the highest since Lb Group Co.Ltd(002601) was listed.
Statistics show that among the 11 investment projects announced, 6 projects involve titanium dioxide business and the other 5 involve lithium battery materials business. Among them, lithium battery materials projects are: 200000 tons of battery material grade iron phosphate project with a total investment of 1.2 billion yuan, and 100000 tons of artificial graphite cathode material project with a total investment of 1.5 billion yuan, The total investment is 3.5 billion yuan for the integration project of 200000 tons of lithium-ion battery cathode materials, and the total investment is 3.5 billion yuan for the integration project of 200000 tons of lithium-ion battery cathode materials. An annual output of 150000 tons of electronic grade lithium iron phosphate project with a total investment of 2 billion yuan. The investment is 11.7 billion yuan, accounting for 64.14% of the total investment. After the project is put into operation, the production capacity of Lb Group Co.Ltd(002601) lithium battery materials will be increased by 850000 tons.
“While continuing to consolidate the leading position of titanium dioxide industry, Lb Group Co.Ltd(002601) is making efforts to build lithium battery materials into the company’s second growth pole in recent years. In the future, Lb Group Co.Ltd(002601) will become a double giant in China’s titanium dioxide industry and lithium battery materials industry,” Zhao Hui, a stock analyst at Tibet Jinxiu commodity exchange, told the Securities Daily
Wang Yutong, an investment analyst in the chemical field of Zhengzhou Hongheng Investment Consulting Co., Ltd., said: ” Lb Group Co.Ltd(002601) The byproduct of titanium dioxide production is the required raw materials that can be used in lithium battery material projects, such as ferrous sulfate, hydrogen, caustic soda and hydrogen peroxide, which saves the procurement cost of raw materials to a certain extent. The dual core drive with titanium dioxide and new energy materials as the core is conducive to strengthening the comprehensive competitiveness of Lb Group Co.Ltd(002601) . “
the prosperity of the industry is still good in the long term
From the current situation at both ends of supply and demand, the prosperity of titanium dioxide and lithium battery materials industry is still good in the longer term. In terms of titanium dioxide, the Research Report of Shengang Securities pointed out that the mining progress of high-grade titanium concentrate in the world is slow and has shown a downward trend recently. Driven by demand, especially overseas demand, the average year-on-year increase of 46% titanium concentrate reached 60%. The sharp rise in the price of upstream raw materials provides strong cost support for titanium dioxide. Under the background of the dual control policy of energy consumption and stricter environmental protection, the new capacity is relatively small. In 2021, the effective capacity of the titanium dioxide industry is only 100000-150000 tons. At the same time, with the gradual withdrawal of small and medium-sized enterprises, the titanium dioxide industry will usher in an accelerated reshuffle, and the scale advantage of the industry leader will become more prominent.
In terms of lithium battery materials, the price of lithium battery materials continued to rise due to the strong demand of new energy vehicles and energy storage market and the tight supply of lithium resources. The Research Report of China Industrial Securities Co.Ltd(601377) pointed out that since 2016, the rapid development of Shanxi Guoxin Energy Corporation Limited(600617) vehicles has brought about the continuous growth of the demand for lithium battery materials, in which the market scale of cathode materials and cathode materials has maintained a growth rate of more than 30%. Benefiting from the continuous growth of downstream power battery shipments, it is expected that the output value of China’s four lithium battery materials will exceed 130 billion yuan in 2022.
Cao Yanyan, partner of Gongjin Enterprise Management Consulting Co., Ltd., said: “in addition to the demand side, the supply side also provides strong support for the price of lithium battery materials. According to the prediction of relevant institutions, the supply of lithium resources will continue to be tight in the next decade, and the supply gap will continue to expand. By 2030, the supply and demand gap will reach 1.2 million tons of LCE (lithium carbonate equivalent) 。 The situation of short supply will lead to an overall increase in the price of lithium battery materials. “
