Research and analysis on the status quo of the lithium battery industry

　　In recent years, benefiting from the rapid growth of China's demand for new energy (electric) vehicles and energy storage, China's lithium battery, especially power lithium battery industry has ushered in an explosive period of development, and the long-term prospects of the industry are optimistic by all parties. Therefore, many listed companies have deployed lithium batteries in an attempt to grab a piece of the pie. For a time, lithium battery concept stocks have emerged one after another, and it is difficult to distinguish between true and false. To this end, this article deliberately sorts out listed companies in the lithium battery industry and analyzes their finances to help readers have a deeper and more thorough understanding of the status quo of the industry. In this series, companies in the lithium battery industry are divided into upstream resource and raw material companies, midstream battery material companies and downstream battery companies. This article is about upstream lithium resources and raw materials. According to EVTank analysis, China’s lithium battery shipments in 2017 have reached 74.8Gwh, accounting for 52.1% of global shipments; among them, vehicle power lithium battery (EVLIB) shipments reached 38.0Gwh, accounting for global vehicle power lithium batteries (EVLIB). ) Shipment volume is 65.4%. In 2016, China’s lithium power battery shipments were 30.5Gwh, and in 2015 it was 17.0Gwh.　　 The increase in shipments of lithium batteries has also driven the rapid growth of upstream lithium compound demand. According to preliminary statistics from the Lithium Branch of the China Nonferrous Metals Industry Association, the world output of lithium and its derivatives equivalent to lithium carbonate equivalent in 2017 was about 235,400 tons, a year-on-year increase of 21.5%; of which, China’s lithium salt production was 123,400 tons, a year-on-year increase of 43.5%; In 2017, the global consumption of lithium was equivalent to about 237,000 tons of lithium carbonate, a year-on-year increase of about 15%; the global supply of lithium compounds was in a tight balance throughout the year, and the price of lithium carbonate increased from 120,000 to 30,000 yuan/ton at the beginning of the year. 70 thousand yuan/ton, the highest even reached 180 thousand yuan/ton; among them, the highest increase of battery-grade lithium carbonate reached 47.54%, and the increase of industrial grade lithium carbonate was 52.73%.　　 The rapid increase in the price of lithium salt raw materials such as lithium carbonate has not only promoted the expansion of existing enterprises' production capacity, but also attracted a large number of outsiders to enter. A battle for lithium salt is slowly kicking off. Tian Qi Li industry's preparations to establish Tian Qi Li industry is one of the world's top five suppliers of lithium ore, its main business includes: the development of solid mineral resources of lithium, lithium chemical products and lithium ore trade. The main product varieties include chemical grade lithium concentrate, technical grade lithium concentrate, industrial grade lithium carbonate, battery grade lithium carbonate, industrial grade lithium hydroxide, battery grade lithium hydroxide, anhydrous lithium chloride, lithium metal and other lithium chemical products . In 2017, benefiting from high prices and increased demand for lithium carbonate, Tianqi Lithium's performance increased significantly: the sales volume of lithium concentrate increased by 29.84% from the previous year to 407,200 tons, and the average sales price increased by 27.04% from the previous year; lithium The sales volume of chemical products increased by 33.28% from the previous year to 32,400 tons; the annual operating income was 5.47 billion yuan, an increase of 40.09% over the same period of the previous year; the comprehensive gross profit rate of the product was 70.14% (see Table 1); it was attributable to the parent company Shareholders’ net profit was 2.145 billion yuan, an increase of 41.86% from the same period last year.　　 Good performance and high lithium product prices have brought Tianqi Lithium Industry stronger confidence and greater ambition. According to financial reports, in 2018, Tianqi Lithium will vigorously promote capacity expansion: Suining Anju 20,000 tons of lithium carbonate project is stepping up feasibility studies and other preliminary preparations, and Australia’s total 48,000 tons of battery-grade lithium hydroxide monohydrate construction project is in progress. It is being implemented in an orderly manner. The first phase of 24,000 tons is expected to be completed by the end of 2018, and the second phase will be completed by the end of 2019; the Shehong base and Zhangjiagang base continue to implement technical reforms, and the Chongqing Tianqi metal lithium and lithium profile production lines are optimized and upgraded during the restoration. In addition to the current lithium salt production capacity of 34,000 tons/year, including 5 million tons of lithium hydroxide and 29,000 tons of lithium carbonate, it is expected that the lithium salt production capacity of Tianqi Lithium Industry will exceed 100,000 tons by 2020.　　 Tianqi Lithium's expansion is not only based on its confidence in the market, but also on its own competitiveness. The first is sufficient resource reserves. Tianqi Lithium currently owns solid lithium resources and is involved in salt lake resources. Its holding company has the largest reserves and the best quality spodumene mine in the world, Greenbushes (Western Australia). Greenbush Mine). According to the Reserve Assessment Report issued by BehreDolbear Australia Pty. Limited, as of September 30, 2016, the total resources of the Greenbush Lithium Mine were 165.1 million tons, equivalent to 8.33 million tons of lithium carbonate equivalent. ; The total lithium ore reserves are 86.4 million tons, which is equivalent to 5 million tons of lithium carbonate equivalent. Its wholly-owned subsidiary, Shenghe Lithium, owns the mining right of the Cuola Spodumene Mine in Yajiang County. The mine area has identified 19.714 million tons of ore, equivalent to 255,744 tons of lithium oxide resources, and the average lithium oxide grade is 1.3%, equivalent to The equivalent of lithium carbonate is about 630,000 tons.　　 The second is financial preparation. In 2017, Tianqi Lithium’s asset-liability ratio was only 40.39% (see Table 2), the current ratio was 3.11, and the ratio of currency assets to current assets was as high as 70.24%, which means that its currency assets are twice as large as current liabilities. Any debt servicing pressure. Its monetary capital reached 5.524 billion yuan, fund-raising activities increased by 2.264 billion yuan, and operating activities increased by 3.09 billion yuan; obviously, Tianqi Lithium has made sufficient financial preparations for capacity expansion.　　 The third is cost control and research investment. In 2017, Tianqi Lithium's R&D investment was 28.55 million yuan, an increase of 342% year-on-year. While vigorously increasing R&D investment, strictly control other expenses (see Table 3), which is obviously conducive to improving its gross profit margin and competitiveness.　　Tianqi Lithium Industry has fully prepared for future competition. As an old rival in China, Ganfeng Lithium is not lagging behind. The layout of Ganfeng Lithium Ganfeng Lithium is one of the world’s top five suppliers of lithium compounds and metal lithium. Its business covers upstream lithium extraction, midstream lithium compounds and metal lithium processing, and downstream lithium battery production and recycling, including: upstream lithium Five major businesses include resource extraction, deep processing of lithium compounds, metal lithium production, lithium battery production, and lithium secondary utilization and recycling. In 2017, Ganfeng Lithium's performance increased significantly: operating income increased from 2.844 billion yuan in 2016 to 4.383 billion yuan in 2017, a growth rate of 54.12%; net profit attributable to shareholders of listed companies increased from 464 million yuan in 2016 Increased to 1.469 billion yuan in 2017, a growth rate of 216.36%. The company's total assets increased from 3.809 billion yuan in 2016 to 8 billion yuan in 2017, a growth rate of 110.02%; net assets increased from 2.488 billion yuan in 2016 to 4.037 billion yuan in 2017, a growth rate of 62.25%.　　 Like Tianqi Lithium, Ganfeng Lithium also started its own upstream capacity expansion. On February 25, 2018, Ganfeng Lithium stated that its new 20,000-ton lithium hydroxide production line has been completed and put into production and is in the trial stage; the 17,500-ton lithium carbonate production line currently under construction is planned to be put into operation in the second half of 2018. Shanghai currently has nearly 40,000 tons of production capacity, and by the end of 2018, its lithium salt processing capacity will reach nearly 80,000 tons.　　 Ganfeng Lithium has made sufficient resource allocation for capacity expansion. At present, Ganfeng Lithium owns equity in six high-quality lithium resources in Australia, Argentina, China and Ireland: 　　 One is MountMarion, the second largest spodumene mine in operation in the world. MountMarion controlled and inferred resources according to JORC rules is 2.7 million tons of LCE, with an average lithium oxide content of 1.37%. The company has entered into a long-term underwriting agreement. From 2017 to 2020, it can underwrite all the lithium concentrate produced by MountMarion, and after 2020, it can underwrite no less than 49% of the lithium concentrate; 　　 The second is Mariana, a lithium concentrate located in the province of Salta, Argentina. Potash lake. According to the resource estimation report prepared by Geos Mining, the lithium-containing brine reserves of the Mariana project are 1,127 million cubic meters, and the controlled and inferred lithium resources are 1,866 kilotons of LCE. Preliminary exploration results show that Mariana has a homogeneous geochemical composition that can be extracted at a relatively low cost through the traditional solar evaporation process; 　　 The third is Cauchari-Olaroz, a lithium salt lake located in Jujuy Province, Argentina. The lithium-containing brine reserves of the Cauchari-Olaroz project are 11.8 million tons of LCE. The company entered into an underwriting agreement to purchase 80% of the actual production of 50% of Cauchari-Olaroz Resources Phase I from the American Lithium Industry. Cauchari-Olaroz plans to start production at the end of 2019 or early 2020; 　　 fourth is Pilgangoora, one of the world’s largest new spodumene mines in Western Australia. The spodumene reserves of the Pilgangoora project are 4.9 million tons of LCE, and the average lithium oxide content is 1.25%. The company has entered into a long-term underwriting agreement to obtain an annual supply of 160,000 tons of lithium raw materials, with an initial period of ten years. Currently, the Pilgangoora project is scheduled to be put into operation in the second half of 2018; 　　5 is Avalonia, a spodumene mine located in Ireland, which is currently in the early stage of exploration; 　　6 is the Ningdu Heyuan Mine, located in Ningdu County, Ganzhou City, Jiangxi Province. Lithium resources of the Ningdu Heyuan Mine It is 100,000 tons of LCE, with an average lithium oxide content of 1.03%. In terms of financial preparations, at the end of 2017, Ganfeng Lithium’s asset-liability ratio was 49.45% (see Table 4), with a current ratio of 1.62, which was relatively healthy and under pressure of unpaid debt; cash was 2.237 billion yuan, relatively sufficient; cost control was also good (See Table 5).　　The attack of the Salt Lake Stocks　　 Seeing the two giants expand aggressively, the Salt Lake stocks, which backed by the salt lake resources, are not to be outdone.　　 Salt Lake Co., Ltd. is an established listed company in Qinghai. Its lithium carbonate business is part of the comprehensive utilization of salt lake resources. It is mainly operated by its indirect holding subsidiary Lanke Lithium. It currently has a production capacity of 10,000 tons of lithium carbonate. In 2017, Salt Lake Co., Ltd. achieved operating income of 11.699 billion yuan, an increase of 12.88% over the previous year; of which, the lithium carbonate business only achieved operating income of 748 million yuan, but the net profit reached 420 million yuan, the profit rate was as high as 56.15%, and the gross profit rate was as high as 56.15%. 68.59% (see Table 7).　　 Undoubtedly, increasing the production capacity of lithium products and increasing their share of revenue is the best way to improve corporate profitability. Therefore, on December 27, 2017, Salt Lake Co., Ltd. announced its capacity expansion plan: Salt Lake Co., Ltd. plans to start a 50,000 tons/year battery grade lithium carbonate project. Among them, Lanke Lithium intends to increase the existing 10,000 tons/year carbon dioxide On the basis of the lithium device, expand the battery-grade lithium carbonate project with an annual output of 20,000 tons. After the expansion, the production scale will reach 30,000 tons/year lithium carbonate; in addition, Salt Lake BYD will build a new battery-grade lithium carbonate project with an annual output of 30,000 tons/year After the expansion, the production capacity of Salt Lake Co., Ltd. will reach 60,000 tons.　　According to the financial report, the expansion of Salt Lake's production is first based on the advantages of lithium resource development in the Chaerhan Salt Lake. Salt Lake's potash production is estimated at an annual output of 5 million tons, and the annual discharge of old brine is about 200 million cubic meters per year, and its lithium ion concentration is about 200-250 mg, that is, the lithium resources in the old brine discharged every year are converted to lithium chloride. It is 200,000-300,000 tons; the raw material liquid provides a reliable resource guarantee for the development of the lithium industry.　　 The second is technical advantage. Lanke Lithium's annual production of 10,000 tons of lithium carbonate project, introduced in 2010 the Russian adsorption method for lithium extraction technology, has broken through the key technology of extracting lithium salt from high-magnesium and low-lithium brine.