On June 5, Shanghai Steel Union released data showing that battery-grade lithium carbonate rose 2,500 yuan/tonne in a single day, with the average price quoted at 307,500 yuan/tonne, and industrial-grade lithium carbonate rose 2,500 yuan/tonne in a single day, with the average price quoted at 292,500 yuan/tonne.

As a comparison, on April 26th, the average price of battery-grade lithium carbonate was reported at 180,000 yuan/ton; the average price of industrial-grade lithium carbonate was reported at 146,500 yuan/ton. That is to say, from April 26 to the present, just 40 days time, the average price of battery-grade lithium carbonate rose 70.83%; industrial grade lithium carbonate average price rose 99.66%. this has been doubled type rise.

Strong market demand

In Shenzhen CIBF exhibition, in Shanghai SNEC exhibition, energy storage products have occupied an extremely important position, from which we can see many new energy industry chain enterprises on the energy storage market.CNESA predicts that in the field of new energy storage led by lithium batteries, the ideal scenario of the next five years compound average annual growth rate (CAGR) reached 60.3%.

Even in the field of power battery, the demand for lithium has been increasing. From the end of the new energy vehicle market, the executive meeting of the State Council on June 2 mentioned that new energy vehicles are the main direction of the transformation and upgrading of the automotive industry, and the space for development is very broad. The meeting pointed out that "we should continue and optimize the vehicle purchase tax reduction and exemption policy for new energy vehicles, and release the consumption potential of new energy vehicles to a greater extent."

Looking ahead to the new energy vehicle market in 2023, the CCA expects China's total new energy vehicle sales to be 9 million units, up 35% year-on-year, with the penetration rate rising to 35%.

The actual situation is that, according to the latest data of the passenger association, the national passenger car retail sales from May 1-28 was 1.392 million units, of which, the national new energy vehicle market retail sales have reached 483,000 units, soaring 82% year-on-year. according to this calculation, the new energy vehicle penetration rate has reached 34.7%.

Power battery, battery industry innovation alliance data show that in April this year, China's power battery loaded 25.1GWh, an increase of 89.4%.

As can be seen from the above, the energy storage field and power battery field of lithium battery demand continues to grow, will drive the demand for lithium materials.

Lithium companies forced to "abandon orders"

Reports from CCTV Finance said that the reporter in Ganzhou, Jiangxi Province, a lithium carbonate production enterprises to see, the entire production workshop is very busy, the production line responsible person told reporters that since May, the order began to gradually increase, especially commissioned the processing of the order is very saturated, however, by the enterprise production capacity constraints, they had to give up some of the orders.

There are lithium carbonate production enterprises, said the relevant person in charge, "after the first of May, the factory full production. With the price of lithium carbonate climbing, a lot of peripheral processing orders, but also one after another to find us for processing. Commissioned processing volume is too large, at present we can not process over."

There is also a phenomenon that many lithium carbonate producers in the surge in orders at the same time, inventory deposition is also significantly accelerated. "Before the inventory is basically zero, and now the products produced are packed and shipped in a timely manner, and the inventory will not exceed 12 hours."

It is worth mentioning that, although Shanghai Steel Union released data showing that the current average price of battery-grade lithium carbonate is 307,500 yuan per ton, but in an interview with CCTV Finance, a lithium carbonate producer production line responsible person said, "In April, the lowest price per ton of battery-grade lithium carbonate is about 150,000 yuan, May gradually warmed up, the price is one day a price, the lowest increase in the price per ton in the Five thousand yuan, the highest increase in about thirty thousand yuan per ton, the current price per ton reached three hundred and fifty thousand yuan, compared to April doubled."

According to this statement above, from $15/ton, up to 350,000 yuan / ton, battery-grade lithium phosphate rose as high as 133.33%!

Leader to increase the lithium resources

I do not know whether it is affected by the rising price of lithium or there was a plan, May 29, lithium resources leading Ganfeng lithium industry released a notice that the company or a subsidiary intends to subscribe to the Australian Leo Lithium company at a price of AUD 0.81 per share, not more than the total share capital of 9.9% equity, the total transaction amount of AUD 106.11 million (about RMB 491 million).

Leo Lithium is an ASX and Frankfurt Stock Exchange-listed company established in 2022 with a focus on the exploration and development of lithium resources in Mali. Its principal asset is the lithium feldspar Goulamina project in Mali, Africa.

Goulamina owns a lithium pyroxene project located in the southern region of Mali, and currently holds one mining license for lithium pyroxene, covering an area of 100 square kilometers. The project has a total explored ore resource of over 140 million tons at an average grade of 1.38%.

Here's the kicker: According to the transaction, after the completion of this investment, Ganfeng International will obtain the underwriting rights of 50% of lithium pyroxene concentrate with an annual capacity of approximately 455,000 tons in Phase I of the Goulamina project. Subject to the conditions, Ganfeng International may also obtain the underwriting right of the remaining 50% capacity of Phase I of the project. In other words, Ganfeng Lithium may indirectly own the underwriting right of 1,00% of 455,000 tons/year of lithium pyroxene concentrate.

This will be the incremental lithium resources that Ganfeng Lithium will receive in the future.

Another lithium giant Tianqi lithium, has been announced on May 12, proposed 3 billion yuan to invest in the construction of 30,000 tons of battery-grade single-water lithium hydroxide project, the project is located in Zhangjiagang Free Trade Zone, Suzhou City, Jiangsu Province.

summarize

In the May 15 lithium prices 11 consecutive rise, Wikipedia lithium that "a single day close to rising 20,000 yuan / ton speed, is not expected to 'emergency brakes', inertia upward are still a period of upward space."

Now it seems that the lithium price has slowed down to 2500 yuan / ton of single-day rise, the late continue to rise the space or has little space.

From the point of view of industrial development, the continuous rise in the price of battery-grade lithium carbonate will impact the profits of downstream manufacturers. That is, although the rise in lithium prices thickened the profits of upstream lithium mining companies, but will significantly increase the material costs of battery factories and automobile enterprises, which is unfavorable to the development of the industry chain.

Hopefully, lithium prices will remain in a reasonable range in the future.