240 billion yuan! The total market value of 30 stocks in the salt lake lithium sector has increased by so much in the last 15 trading days.
The total market value of the A-share sector has rebounded from rmb299.2 trillion since the end of June this year, and the total market value of the A-share sector has risen to rmb299.2 trillion since the end of June this year.
Other lithium resource stocks are also sought after by funds. According to the data of China stock market news choice, since February, the main funds and leveraged funds have focused on raising several upstream lithium resource stocks, with a total net purchase of more than 20 billion yuan.
“After the formulation of the ‘double carbon’ target, the new energy industry has ushered in explosive development. Up to now, the R & D and production of lithium batteries are still the mainstream technology in both the field of energy storage and the field of new energy vehicles. With the further improvement of the penetration rate of new energy vehicles, the market demand for lithium carbonate, as the basic raw material of lithium batteries, is increasing.” Ding Bingzhong, asset partner of the 1898 movement and doctor of finance of Xi’an Jiaotong University, said in an interview with the reporter of Securities Daily that the popularity of lithium resource stocks in the secondary market of the stock market is based on the expectation of this market demand.
enterprises have “lithium” and “profit”
Since the beginning of this year, the price of lithium carbonate has kept hitting new highs, which is no surprise to the market. Public data show that the price of lithium carbonate has risen by more than 65% in the past two months.
“Lithium carbonate prices are rising, and the explosive growth of the new energy vehicle industry is an important driving force behind it.” Ding Bingzhong commented.
According to the data of the Ministry of industry and information technology, in 2021, the production and sales volume of China Shanxi Guoxin Energy Corporation Limited(600617) automobile industry reached 3.545 million and 3.521 million respectively, an increase of 1.6 times year-on-year, ranking first in the world for seven consecutive years.
“In the face of strong downstream demand, price increase and production expansion have become the new normal for the development of lithium resources industry.” Qi Haizhen, President of Beijing Teyi Sunshine New Energy Technology Co., Ltd., said in an interview with reporters.
Under the background of “rising raw material prices”, prospecting and expanding production has become the choice of many enterprises. After the Spring Festival in 2022, Eve Energy Co.Ltd(300014) , Contemporary Amperex Technology Co.Limited(300750) and other lithium battery companies successively issued announcements on the layout of lithium resources. Sunresin New Materials Co.Ltd Xi’An(300487) has also recently signed supply contracts for equipment in the adsorption section of the salt lake lithium extraction project with Tibet Summit Resources Co.Ltd(600338) , Eve Energy Co.Ltd(300014) , Jinhai lithium industry and other companies.
“The global competition for lithium resources is becoming more and more intense. Mining and lock-in has become a necessary choice for many large enterprises to show their capital strength.” Qi Haiyu said.
The rising price of lithium carbonate and the continuous release of market demand have also stimulated the pursuit enthusiasm of investors in the secondary market. According to the data of China stock market news choice, since February, the main funds and leveraged funds have focused on raising several upstream lithium resource stocks, with a total net purchase of more than 20 billion yuan. Among the top 20 stocks with net purchases of main funds since February, Ganfeng lithium’s net purchases of main funds exceeded 2.5 billion yuan, ranking first; Followed by Zijin Mining Group Company Limited(601899) , the net purchase of main funds has also exceeded 2 billion yuan since February.
short term lithium price is still easy to rise but difficult to fall
However, in Qi Haiyu’s view, the continuous price increase of lithium carbonate is not long-term and sustainable, and end consumers are unwilling to pay for too many price increases. Even some new energy vehicle enterprises have suffered losses and began to stop receiving orders.
At the press conference of the State Information Office held on February 28, Xin Guobin, Vice Minister of industry and information technology, said that in order to meet the production needs of power batteries and other aspects, it is necessary to moderately accelerate the development progress of China’s lithium resources and crack down on unfair competition such as hoarding and raising prices.
“Most of the profits of lithium battery products have been robbed by the middle and upper reaches, and the profit space of some battery manufacturers has been squeezed very badly.” Qi Haiyu said that the statement of the Ministry of industry and information technology highlights the management’s concept of healthy and sustainable development of the new energy industry. It is necessary to promote the national new energy development strategy rationally, orderly and rhythmically, and can not blindly fantasize about “completing its work in one battle”.
“The formation of new mine capacity requires a certain period.” Ding Bingzhong said that the demand for lithium resources is expected to remain strong in the next two or three years, and listed companies with competitive advantages are expected to continue to be sought after by investors.
Guotai Junan Securities Co.Ltd(601211) also pointed out in the research report that the supply of lithium resources will not increase much during the year, and it is expected that the spot price of lithium is still easy to rise but difficult to fall in the short term.
