Raw materials for lithium batteries: market status and forecast of lithium carbonate and lithium hydroxide

　　Battery-grade lithium carbonate and lithium hydroxide materials are almost the basic raw materials for the positive electrode materials of lithium-ion batteries, just like the flour for a dazzling array of cakes, desserts, and breads. Since mid-2021, the prices of battery-grade lithium carbonate and lithium hydroxide raw materials have continued to rise rapidly. As of last week's transaction data, the mainstream transaction price of battery-grade lithium carbonate has reached about US$80,000/ton, battery-grade lithium hydroxide is also around 75,000 US dollars / ton. Compared to January 1, 2022, both materials have nearly increased in price tenfold!

　　As a manufacturer with nearly two decades of experience in the customized lithium battery industry, SES Power has never seen such a crazy increase in raw materials, which has also forced our lithium battery products to adjust prices. Our 12V100Ah, 12V200Ah, 24V100Ah, 24V200Ah, 36V100Ah, 48V50Ah, 48V100Ah, etc., 12V100Ah, 12V200Ah, 24V100Ah, 36V100Ah, 48V50Ah, 48V100Ah, etc., high-performance rate lithium batteries are used in our 12V100Ah, 12V50Ah, and 12V50Ah car start-up batteries with high-performance rate lithium batteries (the maximum peak current can be Up to 1500A), customized lithium batteries that can work normally at -40 degrees Celsius, can be applied to UPS, data centers, electric motorcycles, golf carts, photovoltaic power generation and other fields. The price adjustment of these products is unacceptable for customers. Although they also know that this is caused by inflation and shortage of raw materials, many projects, especially large-scale battery energy storage projects, have been planned long ago. The price obviously disrupted their rhythm.

　　A: The current situation of supply and demand of lithium carbonate:

　　(1) Supply side: In February, many material factories were still under maintenance, the superimposed production cycle was short, and the output was at a low level. After entering March, material manufacturers have gradually resumed normal production from maintenance, and the recovery in production levels has led to a recovery in the overall supply of lithium carbonate. However, due to previous maintenance, many material factories are still in the state of delivering previous orders, and the spot supply is still tight.

　　(2) Demand side: In terms of ternary lithium batteries, there is a small increase in downstream power orders in March. In terms of inventory, the material inventory level of most leading manufacturers can be maintained at a rolling inventory level of about 15-30 days. (The inventory here refers to the number of production days for which the material inventory can be maintained from the current day). However, due to the high price of materials, the capital turnover of manufacturers has been greatly challenged. At the same time, the demand for ternary materials at the non-power end has continued to be weak. Most small factories and non-power manufacturers may not be able to support it, thus reducing the operating rate. So overall, the demand for ternary materials is relatively stable.

　　In terms of lithium iron phosphate, at present, many lithium iron phosphate factories still show strong resistance to the purchase of high-priced materials, and many have shown that they have reduced the purchase of high-priced materials. In addition, some lithium iron phosphate manufacturers have adjusted their production schedules to a certain extent. Overall, material demand has declined.

　　B: Current situation of lithium hydroxide supply and demand:

　　(1) Supply side: After entering March, many material factories are still in a state of maintenance, and it is expected that the overall supply level is still at a low level with less supply. Most of the lithium hydroxide is locked in the form of long orders, and the spot market is very limited, which may further exacerbate the structural shortage of lithium hydroxide.

　　(2) Demand side: Considering the future price rise of lithium hydroxide and the current price advantage, some leading battery factories have moved forward the high nickel orders to a certain extent, which will increase the demand for lithium hydroxide.