The layout of lithium battery material manufacturers to upstream resources continues. High nickel leader Ningbo Ronbay New Energy Technology Co.Ltd(688005) locks in the supply of key metal nickel through cooperation with recycling leader Gem Co.Ltd(002340) .
On February 27, Ningbo Ronbay New Energy Technology Co.Ltd(688005) ( Ningbo Ronbay New Energy Technology Co.Ltd(688005) ) and Gem Co.Ltd(002340) ( Gem Co.Ltd(002340) ) announced that they would jointly build a strategic cooperation system based on the industrial chain of "nickel and cobalt resource exploitation - power battery recycling - ternary precursor manufacturing - ternary material manufacturing", and establish long-term close cooperation in the fields of power battery recycling, overseas nickel resource smelting, precursor product supply and marketing, etc.
In terms of power battery recycling, Ningbo Ronbay New Energy Technology Co.Ltd(688005) plans to invest 18% equity of Wuhan power battery regeneration technology Co., Ltd. and nominate a director. According to the announcement, power regeneration is the only entity of Gem Co.Ltd(002340) worldwide engaged in lithium battery recycling business, integrating the recycling business in Wuxi, Wuhan, Jingmen, Tianjin and other places, and no less than 26% of its materials and products will be supplied to Ningbo Ronbay New Energy Technology Co.Ltd(688005) .
In terms of overseas nickel resource projects, Gem Co.Ltd(002340) holding subsidiary Pt 8% of the shares in QMB new energy materials (hereinafter referred to as Indonesia qingmeibang) will be given to Ningbo Ronbay New Energy Technology Co.Ltd(688005) , and the transaction consideration has not been determined. Qingmeibang Indonesia is established by Jingmen Gem Co.Ltd(002340) subordinate company of Gem Co.Ltd(002340) and four partners, including Xinzhan international, Guangdong Bangpu, Indonesia IMIP Park, Osaka and Xingye. Jingmen Gem Co.Ltd(002340) holds 72% of the shares.
In addition, Ningbo Ronbay New Energy Technology Co.Ltd(688005) also plans to purchase no less than 300000 tons of precursors from Gem Co.Ltd(002340) from 2022 to 2026 Ningbo Ronbay New Energy Technology Co.Ltd(688005) will provide necessary support to Party B for precursor testing and technology development, while Gem Co.Ltd(002340) will be responsible for providing competitive prices of nickel, cobalt, manganese and other metal raw materials and precursor processing fees.
Ningbo Ronbay New Energy Technology Co.Ltd(688005) said that the signing of the agreement is the beginning of the company's layout of power battery recycling field and overseas nickel resources through investment means, which is conducive to the company to build a competitive high nickel ternary material industry chain, so that high nickel batteries will not only have performance advantages, but also have cost competitiveness.
Ningbo Ronbay New Energy Technology Co.Ltd(688005) is the leader of high nickel ternary materials in China. Downstream electric vehicles pursue endurance mileage, so high nickel routes with high energy density are sought after. According to trendforce Jibang consulting data, the market share of high nickel ternary materials has increased from 10% in 2019 to nearly 40% in 2021 Ningbo Ronbay New Energy Technology Co.Ltd(688005) performance also soared accordingly. According to the company's performance express, the company achieved an operating revenue of 10.464 billion yuan in 2021, a year-on-year increase of 175.75%; The net profit attributable to the parent company was 911 million yuan, a year-on-year increase of 327.75%.
Under the high-profile atmosphere, Ningbo Ronbay New Energy Technology Co.Ltd(688005) while expanding production capacity, it also distributes upstream resources. According to the announcement, the total production capacity of the three cathode manufacturing bases in Hubei, Guizhou and South Korea reaches 120000 tons / year, and the high nickel precursor project with an annual output of 30000 tons in phase 1-1 of Linshan, Zhejiang is under construction. Previously, Ningbo Ronbay New Energy Technology Co.Ltd(688005) and Zhejiang Huayou Cobalt Co.Ltd(603799) signed a cooperation agreement, which agreed that the procurement volume of precursors in Zhejiang Huayou Cobalt Co.Ltd(603799) from 2022 to 2025 would not be less than 180000 tons. Under the condition that Zhejiang Huayou Cobalt Co.Ltd(603799) provides Ningbo Ronbay New Energy Technology Co.Ltd(688005) with a competitive pricing method of metal raw materials and precursor processing fee, both parties expect the procurement volume of precursors to reach 415000 tons.
The price of ternary precursor increased significantly last year, and Gem Co.Ltd(002340) performance increased accordingly. According to the company's performance forecast, Gem Co.Ltd(002340) is expected to realize a net profit attributable to the parent company of 866 million yuan to 990 million yuan in 2021, with a year-on-year increase of 110% - 140%, and form a total production capacity of more than 230000 tons of three yuan precursors by the end of 2021.
In order to meet the demand of precursor orders for nickel resources, Gem Co.Ltd(002340) has also established a multi-channel nickel resource supply guarantee system, in which recycling is the main supply. In 2022, the company plans to recover more than 20000 tons of metal nickel from nickel resources; The total amount of nickel supply contracts signed with Daiichi and toqing Metal Co., Ltd. exceeded 30000 tons; In addition, the company built its own Indonesia nickel resource project, which is designed to produce 60000 tons of metal nickel per year. The first phase of the project is expected to be put into operation in the first half of this year.
In the case of tight supply and demand, nickel prices are expected to continue to rise. Trendforce Jibang consulting believes that from the perspective of the Chinese market where new energy vehicles account for 53% of the global market in 2021, the spot market price of electrolytic nickel in China has reached 130 Yihua Healthcare Co.Ltd(000150) 000 yuan per ton in 2021 and 16 Shenzhen China Bicycle Company (Holdings) Limited(000017) 0000 yuan per ton in early 2022, which does not rule out the possibility of continuous rise in the future.
