Although the official has announced the news, there is uncertain news about the Byd Company Limited(002594) lithium mining project in Chile.
Recently, according to Agence France Presse, the Chilean Court suspended the lithium mining bidding and authorization just announced by the local government due to the dispute over the bidding scheme. Among them, the contract involving Byd Company Limited(002594) a total of 80000 tons of metal lithium production quota is involved. In this regard, the reporter of the daily economic news asked Byd Company Limited(002594) for confirmation, but as of press time, no reply was received.
” Byd Company Limited(002594) has been laying out the power battery industry chain. This order has not been successful, indicating that the supply of lithium and other bulk materials is still tight in the short term.” On January 25, Yang Weibin, an expert in the power battery industry, said in an interview with the reporter of the daily economic news that if a deal fails, it will not have much material impact on Byd Company Limited(002594) , but it will make it more cautious. It is good for the buyer to be more cautious, otherwise it will only encourage the speculation of lithium ore.
Although the layout of lithium business is blocked, the circle of friends for external supply of power battery business of Byd Company Limited(002594) has expanded again. Recently, Byd Company Limited(002594) and China FAW jointly invested and established a power battery company – FAW Fudi New Energy Technology Co., Ltd. (hereinafter referred to as FAW Fudi). ” Byd Company Limited(002594) from internal supply to external supply, the circle of friends continues to expand, indicating that its power battery business is not far from independent development.” Cui Dongshu, Secretary General of the national passenger car market information joint committee, believes that.
lithium mining was stopped?
On January 14, Byd Company Limited(002594) announced that it had successfully won the lithium mining contract of the Ministry of mining of Chile. Through its subsidiary Byd Company Limited(002594) Chile branch, it submitted a quotation of US $61 million (about 386 million yuan) for the purchase of 80000 tons of metal lithium production quota, which is the highest quotation among bidders.
According to the introduction of Byd Company Limited(002594) , five quotas totalling 400000 tons of metal lithium will be subject to public bidding this time. The local government announced that two companies including Byd Company Limited(002594) won the bid, and each contract was awarded an output quota of 80000 tons of metal lithium. These two winning quotas account for 1.8% of Chile’s known lithium reserves.
However, things are not going as smoothly as expected. Public information shows that the lithium mining contract in Chile was suspended because the governor of Copiapo state, where the lithium mine is located, and the indigenous communities near Atacama Salt Lake appealed on the grounds that the bidding scheme violated the principles of environmental protection and economic development.
However, the reporter learned from an insider who asked not to be named that up to now, Byd Company Limited(002594) the lithium mining contract in Chile has not been finalized and stopped, and the specific situation is still being confirmed.
Public information shows that at present, Chile’s proven lithium resource reserves are 53 million tons, accounting for 41% of the global total. With the continuous expansion of the global new energy vehicle market, lithium, as one of the most important raw materials of power batteries, has become an important reserve resource for enterprises in the power battery industry chain.
“Having an independent lithium mining right can not only alleviate the cost pressure caused by the rising price of lithium, but also strengthen the control of industrial chain resources and ensure the stability of the whole supply chain system.” An unnamed power battery industry expert believes that only in this way can Byd Company Limited(002594) ensure the external supply demand of its products in the later stage.
According to Cui Dongshu, the Byd Company Limited(002594) purchase of lithium mining rights was frustrated, which had little impact on the layout of its global lithium resources. “Chile is not Byd Company Limited(002594) the only choice for the global distribution of lithium resources. It will also have corresponding plans in other countries. Australia and Argentina are optional objects.” Cui Dongshu said.
countdown to battery independent listing?
It is worth mentioning that the circle of friends provided by Byd Company Limited(002594) power battery is further expanding.
According to the data of qixinbao, FAW Freddy was established on January 15 by Byd Company Limited(002594) wholly-owned subsidiary Freddy Industry Co., Ltd. and FAW equity investment (Tianjin) Co., Ltd., a wholly-owned subsidiary of China FAW Group Co., Ltd., with 51% and 49% shares respectively. Its business scope includes new energy technology promotion services; Development, production and sales of power batteries and battery systems, and provision of relevant after-sales and technical consulting services; Development, production and sales of energy storage batteries and energy storage systems; Battery recycling, echelon utilization, recycling, etc.
In fact, FAW and Byd Company Limited(002594) have long cooperated in power batteries. In July 2021, FAW, Changchun municipal government and Byd Company Limited(002594) jointly signed an investment cooperation agreement on new energy power battery project, with a total investment of more than 10 billion yuan. At present, the e-qm5 series of FAW Red’s pure electric medium-sized car is equipped with lithium iron phosphate blade batteries provided by Byd Company Limited(002594) , which is one of the earliest customers of Byd Company Limited(002594) battery external supply.
In addition to FAW, Byd Company Limited(002594) power battery also supplies Chongqing Changan Automobile Company Limited(000625) and Zhongtong Bus Co.Ltd(000957) . Moreover, it is reported that Tesla, Volkswagen, Daimler, Hyundai Motor and other multinational car companies are also in contact with Byd Company Limited(002594) , but it has not been officially confirmed.
Li Yunfei, general manager of Byd Company Limited(002594) brand and public relations department, once said in an interview with reporters: “all automobile brands you can think of are discussing with us the cooperation scheme based on blade battery technology.”
In Cui Dongshu’s view, Byd Company Limited(002594) the gradual expansion of its circle of friends from internal supply to external supply shows that its power battery business is not far from splitting and independent development.
According to the goal put forward by Wang Chuanfu, chairman and President of Byd Company Limited(002594) , Byd Company Limited(002594) plans to split its battery business and list it independently before the end of 2022 to raise funds for development. This means that the independent listing of Byd Company Limited(002594) power battery business has entered the countdown.
However, Yang Weibin believes that it is too early for Byd Company Limited(002594) power battery business to be split and listed independently, or it may need to wait until three years later. “At present, Byd Company Limited(002594) ‘s power batteries are still mainly supplied internally, and the proportion of external supply business is far from reaching the target of independent listing of enterprises.” Yang Weibin explained.
In this regard, the relevant person in charge of Byd Company Limited(002594) only said: “at present, the company is in the normal process of splitting and listing its power battery business segment, and will not update the information temporarily.”
