“King Ning” has made another move to the upstream.
On September 30, Contemporary Amperex Technology Co.Limited(300750) ( Contemporary Amperex Technology Co.Limited(300750) ) announced a capital operation together with China Molybdenum Co.Ltd(603993) ( China Molybdenum Co.Ltd(603993) ), a leading copper and cobalt company with a market value of 100 billion. Announcement shows that Contemporary Amperex Technology Co.Limited(300750) through a subsidiary to increase capital, so as to obtain the China Molybdenum Co.Ltd(603993) 24.68% stake in the two major copper and cobalt mines in the Congo, a move to become the company’s second largest shareholder.
Shareholding directly to the first largest shareholderAccording to the announcement, Contemporary Amperex Technology Co.Limited(300750) and its wholly-owned subsidiary Sichuan Times New Energy Technology Co., Ltd (Sichuan Times) signed an Investment Framework Agreement with Luoyang Guohong Investment Holding Group Co.
It is worth noting that Luo Mineral Group is currently the second largest shareholder of China Molybdenum Co.Ltd(603993) . As shown in the report, Lomin Group holds 24.68% of the shares of China Molybdenum Co.Ltd(603993) . After the completion of the transaction, Lomin Group will become a wholly-owned subsidiary of Sichuan Times, and Sichuan Times will indirectly hold 24.68% of the shares of China Molybdenum Co.Ltd(603993) , becoming the second largest indirect shareholder of China Molybdenum Co.Ltd(603993) .
This also means that Contemporary Amperex Technology Co.Limited(300750) will hold 24.68% shares of China Molybdenum Co.Ltd(603993) , a leading copper and cobalt mine with a market capitalization of more than 100 billion, through two layers of “vests”, Sichuan Times and Luomin Group. Contemporary Amperex Technology Co.Limited(300750) is only one step away from the 24.69% shareholding of the first largest shareholder of China Molybdenum Co.Ltd(603993) .
China Molybdenum Co.Ltd(603993) said that the transaction will not lead to a change in the company’s largest shareholder, and Contemporary Amperex Technology Co.Limited(300750) has no intention to seek a controlling stake in the company. Contemporary Amperex Technology Co.Limited(300750) also said that it has no further plans to increase its shareholding in the company in the next 36 months, and this transaction will not lead to a change in the actual control of China Molybdenum Co.Ltd(603993) .
China Molybdenum Co.Ltd(603993) What is the attractiveness of the “King of Ning” down to become the second shareholder?
China Molybdenum Co.Ltd(603993) expected to become the largest cobalt producerInformation shows that China Molybdenum Co.Ltd(603993) is a global diversified mineral giant, copper production capacity of China’s third, cobalt, niobium production capacity of the world’s second. The company’s main mineral products include copper, cobalt, molybdenum, tungsten, niobium, phosphorus, gold, etc. Since 2013 the company has acquired copper and gold mines, niobium and phosphorus mines, copper and cobalt mines and other resources around the world.
The financial report shows that in the first half of this year, China Molybdenum Co.Ltd(603993) achieved revenue of 91.767 billion yuan, an increase of 8.20% year-on-year, the net profit attributable to the mother reached 4.148 billion yuan, an increase of 72.91% year-on-year, the best semi-annual results since the listing.
It is not difficult to see that Contemporary Amperex Technology Co.Limited(300750) “intends to cobalt mine” this time. As we all know, cobalt is one of the cathode materials in the ternary lithium power battery, which can effectively extend the battery life and is an indispensable material.
Due to its scarcity, cobalt has become a strategic rare metal resource. Compared with nickel metal, cobalt resources are relatively scarce and the price is high. At present, 66% of the global cobalt production comes from the political instability of the DRC, resulting in limited reserves and rising prices, which has become a constraint to the development of new energy vehicles.
Shenwan Hongyuan Group Co.Ltd(000166) A research report estimates that the global new energy vehicle production in 20222024 will be 10.507 million units, 15.757 million units and 22.062 million units respectively, by which it is estimated that the global new energy vehicle power battery cobalt metal demand will reach 56,000 tons, 82,000 tons and 112000 tons in 20222024.
It is understood that the TFM copper-cobalt mine project started trial production in July last year, and the current total production capacity has reached 250000 tons of copper and 20,000 tons of cobalt. According to the company’s capacity planning, the TFM mixed mine project will be put into operation in 2023, adding 200000 tons of copper capacity and 17,000 tons of cobalt capacity. In addition, in July this year, China Molybdenum Co.Ltd(603993) announced that the first phase of KFM copper and cobalt mine began investment and construction, and will be put into operation in the first half of 2023.
Haitong International expects that after the KFM project reaches production in the first half of 2023, it will increase the average annual output of copper by 90,000 tons and the average annual output of cobalt by 30,000 tons. In other words, the two major copper and cobalt mines are expected to reach 67,000 tons of cobalt production capacity by the first half of 2023, and China Molybdenum Co.Ltd(603993) will become the world’s largest cobalt producer. Almost able to meet more than 80% of the global demand for cobalt by itself.
The industry to promote low cobalt ternary lithium batteriesHowever, from the perspective of the future battery technology route, the long-term market demand for cobalt in the battery field has a tendency to go down. Previously high cobalt prices, so that some car manufacturers as well as battery manufacturers are developing to reduce the proportion of cobalt in the formula of ternary lithium battery materials, and even actively explore the cobalt-free technology route.
For example, change the ratio of the battery cathode material formula, the ratio of nickel-cobalt-manganese or nickel-cobalt-aluminum in ternary batteries from 6:2:2 to 8:1:1. Many Chinese lithium battery manufacturers are also laying out high nickel ternary batteries, high nickel and low cobalt to improve energy density on the one hand, and to reduce costs on the other.
The industry generally expects the forecast of future cobalt demand to decrease year by year, reflecting the development direction of the battery technology route. Southwest Securities Co.Ltd(600369) believes that, at present, precursor manufacturers have no significant willingness to stock up, and cobalt prices are expected to remain low and have the possibility of declining in the short term.
A Deloitte report also believes that high nickel and cobalt-free ternary batteries with energy density advantages are the direction for lithium-ion and vehicle enterprises to work together, but it remains to be seen if cobalt-free batteries are to break through the concept hype and achieve substantial performance improvement. At present, the nickel-cobalt-manganese ternary battery NCM811 is the battery that has achieved mass production and has the lowest cobalt content. 2021 In August, Hive Energy announced that the cobalt-free battery it developed has taken the lead in achieving mass production, but the technology is controversial.
As of September 30, Contemporary Amperex Technology Co.Limited(300750) share price of 400.89 yuan, the latest market value of 978.4 billion yuan, compared with the high point of 690 yuan per share at the end of last year, a drop of 42%. And since August 23 this year, when it hit a stage closing high of $556, Contemporary Amperex Technology Co.Limited(300750) has seen a wave of adjustment, with a stage drop of 28% to September 30 and a market value evaporation of 378.2 billion yuan. China Molybdenum Co.Ltd(603993) latest market value is 94.3 billion yuan, the recent wave of kill also appeared, the market value fell below the 100 billion mark.