Dangsheng Technology spends huge sums of money to build a new lithium battery material base to break through the bottleneck of production capacity

　　Recently, Dangsheng Technology has been making frequent moves in the market. There are constant news on investment platforms, institutional research, and production expansion. Technology enthusiasts have compiled Dangsheng Technology’s dynamics and expressed their views.

　　Dangsheng Technology stated on the investor interaction platform that the company currently has sufficient orders and the production line is close to full production. Dangsheng Technology's multi-material products are currently dominated by power-type NCM523 materials, but the proportion of high-nickel NCM622 and NCM811 is gradually increasing. Recently, Dangsheng Technology has received a total of 49 institutions to visit, participating in the survey, including Morgan Stanley, Singapore Government Investment and many other foreign institutions. When Dangsheng Technology received a survey, it revealed that the company's current total production capacity of cathode materials is 16,000 tons, of which lithium cobalt oxide capacity is about 3,000 tons, and the rest is multi-material production capacity. The production capacity is still relatively tight. The construction of the third phase of Jiangsu Dangsheng has started. The company plans to add 18,000 tons of production capacity in the third phase of the Jiangsu project, and the new production line can produce all types of power multi-element materials such as NCM811/NCA, NCM622, and NCM523.

　　Subsidies and the "double points" policy continue to promote the development of new energy vehicles, guide and encourage the performance upgrade of lithium battery cathode materials for vehicle power, and accelerate the process of vehicle electrification. High-nickel ternary materials have gradually become the mainstream of the market by virtue of their high energy density and long service life. Jintan District has a good geographical location advantage, superior investment environment and complete supporting infrastructure. In recent years, it has introduced domestic new energy vehicles including BAIC New Energy, Zotye Automobile, CATL, AVIC Lithium, and Penghui Energy through investment promotion. Leading enterprise in the industry chain. Dangsheng Technology invests in the construction of a lithium battery new material industrial base in Jintan area, enjoys policy support at all levels of the country, Jiangsu Province, Changzhou City and Jintan District, and reduces investment and construction costs. At the same time, industrial clusters help the company and related customers to further Strengthen business cooperation, reduce operating costs, and enhance market competitiveness.

　　Comment: The decline in subsidies for new energy vehicles is an established policy that the country has long announced. At the same time, the standard for subsequent subsidies will be linked to the range of power vehicles and the energy density of power batteries. The longer the range and the higher the battery energy density, the amount of subsidy and The coefficient is higher. The high-nickel-powered diversified materials are in line with the direction of national industrial policy guidance, and the decline of subsidy policies is an opportunity for companies with obvious technological advantages. Dangsheng Technology actively grasps the policy and location advantages, reduces operating costs and promotes industrial development. In the future, as the bottleneck of production capacity opens, it is expected to gradually release the profit effect in 2019. Shenwan Hongyuan estimates that the net profit of Dangsheng Technology from 2018 to 2020 will be 306 million yuan, 407 million yuan and 794 million yuan, respectively.