Recently, Ningbo Shanshan Co.Ltd(600884) , Xiamen Tungsten Co.Ltd(600549) , Miracle Automation Engineering Co.Ltd(002009) and other listed companies announced to increase investment in lithium battery industry chain.
Insiders said that although the lithium battery industry chain is under pressure in the short term due to factors such as the epidemic and the rise in the price of upstream raw materials, the medium – and long-term development prospects are still good. Listed companies in the industrial chain hope to accelerate production expansion, continuously expand market share, strengthen the scale advantage of integrated production capacity and improve profitability.
companies expand production
The leader of negative electrode materials Ningbo Shanshan Co.Ltd(600884) 4 announced on the evening of April 26 that its subsidiary Shanghai Shanshan lithium battery material technology Co., Ltd. plans to set up a project company in Anning, Yunnan Province and invest in the construction of a 300000 ton lithium ion battery negative electrode material integration base project, with a total planned fixed asset investment of about 9.7 billion yuan.
On the same day, Xiamen Tungsten Co.Ltd(600549) announced that due to the increased sales demand of the company’s high-performance ternary material products, the current production capacity has been unable to meet the market demand. It is planned to build a new comprehensive production workshop in Xtc New Energy Materials(Xiamen) Co.Ltd(688778) Haijing base, a subordinate company, to achieve an annual output of 15000 tons of high-performance ternary cathode material, with an investment of 471 million yuan. After the project is completed, Haijing base will reach an annual production capacity of 85000 tons.
Xiamen Tungsten Co.Ltd(600549) has been accelerating the production of ternary material project. Recently, the company said in the institutional research that in terms of cathode materials, the company expects 30000 tons of ternary materials to be put into operation in the second half of 2022 and another 30000 tons of ternary materials to be put into operation in the second half of 2023. In addition, the company has launched the first phase of lithium iron phosphate project in Sichuan base.
Not only is it put into operation in the early stage, but with the rapid development of new energy vehicle industry and the rapid increase of power lithium battery installed capacity, the scale of power lithium battery recycling market continues to expand The Soochow Securities Co.Ltd(601555) research report predicts that in 2025, 2030 and 2035, the market space for power battery recycling will reach 67.5 billion yuan, 138.7 billion yuan and 294.6 billion yuan respectively, with a compound annual growth rate of 18% from 2020 to 2035.
In this context, listed companies have also accelerated the production of power lithium battery recycling Miracle Automation Engineering Co.Ltd(002009) recently announced that the company plans to invest no more than 380 million yuan to build an environmental protection project with an annual processing capacity of 150000 tons of lithium iron phosphate batteries. The company said that this will help promote the company to form a more complete lithium battery recycling business system.
Listed companies also jointly layout the lithium battery industry chain through strategic cooperation. Recently, Beijing Easpring Material Technology Co.Ltd(300073) and Lishen battery signed a strategic cooperation agreement to establish an all-round and multi-level strategic partnership in the supply of lithium battery cathode materials, resource recovery of lithium ion battery, upstream resource development and so on Beijing Easpring Material Technology Co.Ltd(300073) said that this cooperation will help the company fully release its subsequent new production capacity and further consolidate its advantageous position in the global market.
improve profitability
According to the data of China automotive power battery industry innovation alliance, the loading volume of China Shipbuilding Industry Group Power Co.Ltd(600482) battery reached 21.4gwh in March, up 138% year-on-year and 56.6% month on month, showing a rapid growth trend.
This has become the biggest driving force for the lithium battery industry chain company to speed up the layout Ningbo Shanshan Co.Ltd(600884) said that the investment and construction of a 300000 ton / a lithium-ion battery cathode material integration base project is in line with the future development prospects of the lithium battery industry. After the completion of the project, it is conducive to meeting the growing needs of customers, continuously expanding market share and consolidating the company’s leading position in the industry. At the same time, it is conducive to strengthening the scale advantage of integrated production capacity, significantly reducing production costs and improving profitability. In addition, the project is located in Yunnan, which can actively expand overseas customers and quickly respond to their needs by relying on local low-cost clean energy and strategic regional advantages.
The high outlook of the lithium battery sector also led to a significant rise in the profitability of relevant companies. Take Ningbo Shanshan Co.Ltd(600884) as an example. On the evening of April 27, the first quarterly report released by the company showed that the company achieved a net profit of 807 million yuan, a year-on-year increase of 166.93%. Among them, the negative electrode material business realized a net profit of 147 million yuan, a year-on-year increase of 43.44%. The company said that the prosperity of the new energy vehicle industry continued to improve, the market demand for cathode materials business continued to be strong, the company’s products were in short supply, and the production, sales and operating performance of cathode materials increased year-on-year. In 2021, the company’s negative pole product unit profit increased against the trend, and the net profit per ton of product increased by 65% year-on-year.
market prospect
Industry insiders said that although the lithium battery industry chain is under pressure in the short term due to factors such as the epidemic and the rise in raw material prices, the momentum of medium and long-term improvement remains unchanged.
“China Shanxi Guoxin Energy Corporation Limited(600617) automobile production and sales continued the momentum of rapid growth, and it is expected to reach 5 million vehicles in 2022, becoming the main force of market growth.” Fu Bingfeng, executive vice president and Secretary General of China Automobile Industry Association, said.
According to evtank’s prediction, the global power battery demand will officially enter the TWH era in 2025 and reach 2661gwh in 2030, with a compound annual growth rate of more than 46%.
Benefiting from the high prosperity of lithium battery sector, relevant listed companies are full of expectations for future production expansion Beijing Easpring Material Technology Co.Ltd(300073) director and general manager Chen Yanbin said at the performance briefing a few days ago that the company will accelerate the construction of production capacity and actively distribute upstream resources in 2022. The company has developed high-performance lithium iron phosphate and lithium manganese iron phosphate products. In the future, it plans to build an annual production capacity of 300000 tons in Guizhou base for the production of series lithium iron phosphate and lithium manganese iron phosphate materials.
