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In recent years, benefit from the rapid growth of China's new energy vehicles and energy storage demand, China's lithium batteries, especially the power lithium battery industry ushered in the outbreak of the development period, the industry long-term prospects are optimistic about the parties. Therefore, many listed companies have laid out lithium The battery, trying to grab a cup. For a time, the lithium battery concept stocks have risen one after another. 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 financials to help readers deeper and more thorough. Understand the status quo of the industry. This series will be divided into lithium battery industry companies: upstream resources and raw material companies, the middle reaches of the battery materials companies and downstream battery companies, this article is the upper reaches of lithium resources and raw materials.
According to institutional analysis, in 2017, China's lithium battery shipments have reached 74. 8Gwh, accounting for 52.1% of global shipments; of which, automotive lithium battery (EV LIB) shipments reached 38. 0Gwh, accounting for global automotive Power lithium battery (EV LIB) shipments 65. 4%. And in 2016 China's lithium-ion battery shipments was 30. 5Gwh, 2015 was 17. 0Gwh.
The increase in lithium battery shipments also led to a rapid increase in the demand for lithium compounds in the upper reaches. According to preliminary statistics of the Lithium Industry Association of China Nonferrous Metals Industry Association, in 2017, the output of lithium and its derivatives in the world was equivalent to approximately 254,400 tons of lithium carbonate equivalents. The year-on-year increase was 21.5%; of which, China’s lithium salt production was 123,400 tons, an increase of 43.5% year-on-year; in 2017, global lithium consumption was equivalent to approximately 23.7 million tons of lithium carbonate, which was a year-on-year increase of approximately 15%; The compound supply was tightly balanced throughout the year, and the price of lithium carbonate rose from RMB 123,000/ton at the beginning of the year to RMB 167,000/ton, and even reached RMB 180,000/ton at the highest; among them, battery grade carbonic acid The highest increase in lithium reached 47.54 percent, and the rise in industrial grade lithium carbonate was 52.73 percent.
The rapid increase in the price of lithium salt raw materials such as lithium carbonate not only promoted the expansion of the original enterprise's capacity, but also attracted a large number of outsiders to enter. A battle of lithium salts was slowly kicking off.
Tian Qi Lithium Industry
Tianqi Lithium is one of the five largest suppliers of lithium mines in the world. Its main business includes: development of solid lithium resources, production of lithium chemical products, and trading of lithium ore. The main products include chemical grade lithium concentrates and technical grade lithium concentrates. , 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 and other products, Tianqi Lithium's performance increased significantly: Sales volume of lithium concentrate increased by 29.84% compared to the previous year to 407,200 tons, and the average sales price increased compared to the previous year. 27. 04%; Sales volume of lithium chemical products increased by 33.28% over the previous year to 32,400 tons; Operating income for the year reached 5.47 billion yuan, an increase of 40.09% over the same period of last year; Product gross profit margin It was 70.14% (see Table 1). The net profit attributable to shareholders of the parent company was 2.15 billion yuan, an increase of 41.86% over the same period of the previous year.
With good performance, the high price of lithium products has brought greater confidence and greater ambition to Tianqi Lithium. According to the financial report, Tianqi Lithium will vigorously promote its capacity expansion in 2018: Suining lives 20,000 tons of lithium carbonate project. Feasibility studies and other preliminary preparations are being stepped up. Australia’s total 48,000 tons of battery-grade monolithic lithium hydroxide construction projects are being implemented in an orderly manner. One of the 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; Shehong base and Zhangjiagang base continued to implement technological transformation, Chongqing Tianqi metal lithium and lithium profile production line in the optimization of the upgrade. With the current lithium salt production capacity of 34,000 tons / year, including 0.5 Ten thousand tons of lithium hydroxide and 29,000 tons of lithium carbonate. It is expected that the lithium salt production capacity of Tianqi Lithium will exceed 100,000 tons by 2020.
Tian Qi Lithium's expansion in addition to maintaining confidence in the market, is based more on its own competitiveness.
First, resources sufficient reserves, Tian Qi Li industry currently has a solid lithium salt lake resources, mineral resources and to get involved, its holding of Taliesin has the largest reserves, the best quality of spodumene ore currently being mined in the world - Western Australia Greenbushes ( Greenbushes mine). according to Behre Dolbear Australia Pty Ltd (Behre Dolbear Australia Pty. Limited) issued by the reserves assessment report, as of September 30, 2016, the total amount of Greenbushes lithium ore resources of 16, 5.1 million tons , equivalent to 8.33 million tons of lithium carbonate equivalents; total lithium reserves of 8,640 tons, equivalent to 5 million tons of lithium carbonate equivalent.
Its wholly-owned subsidiary of lithium industry Sheng Jiang has four Ya'an county measures to pull spodumene ore mining rights, the identification of mine ore 1, 9.714 million tons, equivalent to the amount of lithium oxide resources 255, 744 tons, average grade lithium oxide 1 . 3%, equivalent to about 0.63 million tons of lithium carbonate equivalent.
Second, the financial well-prepared. 2017, Tian Qi Li industry assets and liabilities rate was only 40.39% (Table II), the flow ratio of 3.11, current assets of monetary assets accounted for as high as 70.24%, which means with its monetary assets is 2 times the current liabilities, without any debt pressure its currency funds totaling 5.524 billion yuan, an increase from financing activities 2.264 billion yuan, an increase of business activities of 3.095 billion yuan; obviously, days Qi Lithium made full financial preparations for capacity expansion.
Third, cost control and investment in research. 2017, Tian Qi Li industry R & D investment is 28.55 million yuan, an increase of 342%. At the same time greatly increase R & D investment, strict control of other expenses (Table III), which is obviously there It will help improve its gross margin and competitiveness.
Tianqi Lithium has already made sufficient preparations for future competition. As an old rival in the country, Li Feng is not behind.
Li Feng's layout
Junfeng Lithium is one of the five largest suppliers of lithium compounds and metallic lithium in the world. Its business covers upstream lithium extraction, processing of lithium compounds and lithium metal in the middle and downstream lithium battery production and recycling, including: Upstream lithium extraction, Lithium compounds Deep processing, metal lithium production, lithium battery production and lithium secondary recycling and recycling five major businesses.
In 2017, the company's performance in lithium increased significantly: its 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 was In 2016, the company’s total assets increased from 446 million yuan to 1.469 billion yuan in 2017, with a growth rate of 216.36%. The company’s total assets increased from 3,809 million in 2016 to 8 billion in 2017. This was 110. 02%; net assets increased from 2.488 billion yuan in 2016 to 4.037 billion yuan in 2017, an increase of 66.25%.
Like Tianqi Lithium, Nissan Lithium also started its own upstream capacity expansion. On February 25, 2018, Nisphoon Lithium stated that its newly-built 20,000-ton lithium hydroxide production line had been completed and put into production, and was in the trial phase; The 175,000 tons of lithium carbonate production line still under construction is scheduled to be put into operation in the latter half of 2018. Together with the currently owned capacity of nearly 40,000 tons, by the end of 2018, its lithium salt processing capacity will reach nearly 80,000 tons.
Junfeng Lithium Industry has done a resource allocation for capacity expansion. At present, Junfeng Liye has equity in six quality lithium resources in Australia, Argentina, China and Ireland:
First, Mount Marion, the world's second-largest operating spodumene mine. Mount Marion controlled and inferred resources according to the JORC rules of 2.7 million tons of LCE, with an average lithium oxide content of 1.37%. The company entered into long-term underwriting. The agreement will cover all lithium concentrates produced by Mount Marion from 2017 to 2020, and will have less than 49% lithium concentrates after 2020;
The second is Mariana, a lithium-potassium salt lake located in the province of Saitata, Argentina. According to a resource estimation report prepared by Geos Mining, the lithium-bearing brine reserves of the Mariana project are 1,127 million cubic meters, and the controlling and inferring lithium resources are 1,866. Thousand tons of LCE. Preliminary exploration results show that Mariana has a homogeneous geochemical composition that can be extracted at a relatively low cost through traditional solar evaporation processes;
The third is Cauchari- Olaroz, a lithium salt lake located in the Jujuy province of Argentina. The lithium-bearing brine reserves of the Cauchari- Olaroz project are 11.8 million tons of LCE. The company has entered into an underwriting agreement to purchase Lithium from the Americas and accounts for Cauchari. - 80% of the actual production of the Olaroz resource, 50% of the first phase. Cauchari-Olaroz plans to start production by the end of 2019 or early 2020;
The fourth is Pilgangoora, one of the world's largest new spodumene mines in Western Australia. The Pilgangoora project has a spodumene deposit of 4.9 million tonnes of LCE and an average lithium oxide content of 1.25%. The company entered into a long-term underwriting agreement to obtain Each year supplies 160,000 tons of lithium raw materials, with an initial period of ten years. At present, the Pilgangoora project is scheduled to start production in the second half of 2018;
The fifth is Avalonia, a spodumene mine in Ireland that is currently in the early stages of exploration;
The sixth is Ningdu Heyuan Mine, which is located in Ningdu County, Ganzhou City, Jiangxi Province. The source of lithium in the Ningdu Heyuan Mine is 100,000 tons of LCE. The average lithium oxide content is 1. 03%.
In terms of financial preparation, at the end of 2017, the asset-liability ratio of Lifan Lithium was 49. 45% (see Table 4), the liquidity ratio was 1.62, relatively healthy, and the insolvency pressure; cash was 2.273 billion yuan, relatively sufficient Cost control is also good (see Table 5).
Salt Lake's attack
Seeing the expansion of the two giants, salt lake shares backed by salt lake resources are not to be outdone.
Salt Lake is a veteran listed company in Qinghai. Its lithium carbonate business is part of the comprehensive utilization of salt lake resources. It is mainly operated by the indirect holding subsidiary Lanke Lithium, which currently has 10,000 tons of lithium carbonate capacity.
In 2017, Salt Lake’s operating income was 11.699 billion yuan, an increase of 12.88% over the previous year; of which, the lithium carbonate business only realized operating revenue of 748 million yuan, but net profit reached 420 million yuan. The rate of up to 56. 15%, gross margin of 68. 59% (see Table 7).
Undoubtedly, improving lithium production capacity and increasing its share of revenue is the best way to increase the profitability of a company.
As a result, on December 27, 2017, Salt Lake announced the production capacity expansion plan: Salt Lake plans to plan to start a 50,000-ton/year battery-grade lithium carbonate project, in which Lanke Lithium intends to have 10,000 tons/year of existing carbonic acid. Lithium-based devices will be expanded with a 20,000-ton/year battery-grade lithium carbonate project, and the scale of production will reach 30,000 tons/year of lithium carbonate after expansion; In addition, BYD BYD will build a new 30,000-ton/year battery-grade lithium carbonate project annually. After the expansion, the production capacity of Salt Lake will reach 60,000 tons.
According to the financial report, the expansion of salt lake shares is based on the Lithium resources development advantage of Chaerhan Salt Lake. The salt fertilizer production of Salt Lake is estimated to produce 5 million tons of oil each year. The annual amount of old brine discharged is about 200 million cubic meters per year. The ion concentration is about 200-250 milligrams, that is, the annual discharge of lithium in the old brine is equivalent to 200-300,000 tons of lithium chloride; the raw material liquid provides a reliable resource for the development of the lithium industry.
The second is technical advantages. Lanke Lithium has an annual output of 10,000 tons of lithium carbonate project. In 2010, it introduced the Russian adsorption brine technology to extract lithium. It has broken through the key technology of extracting lithium salt from high-magnesium and low-lithium brine.
The third is the cost advantage. Lanke Lithium relies on the abundant lithium resources of Chaerhan Salt Lake and the public facilities of Salt Lake Industrial Park. The cost of lithium extraction technology for lithium extraction is relatively superior to that of its peers, and it is also suitable for the large-scale distribution of lithium industry. .
Currently, given the relatively large debt repayment pressure of Salt Lake (see Table 8), the expansion of lithium carbonate production capacity will continue to increase its debt repayment pressure in the short term. However, after the release of production capacity, the high gross profit margin of the lithium industry will obtain sufficient supply for it. Cash flow and profits, and ultimately improve its financial position.
Yahua Group's ambition
Unlike the case of the former three, Yahua Group's main business is the civil explosives and lithium business. At the same time, it continues to expand overseas, transportation, and military operations. Among them, the lithium business mainly covers the protection of upstream lithium resources, midstream lithium carbonate, and lithium hydroxide. And other basic lithium salt production and sales.
In 2017, Yahua Group achieved operating revenue of 2.358 billion yuan, an increase of 49.33% over the same period of the previous year; of which, lithium product operating income was 698 million yuan, accounting for 29.59% of total operating revenue, increased 100. 92%; Achieve a total profit of 336 million yuan, an increase of 73.21% over the same period last year; Achieve a net profit attributable to shareholders of listed companies was 238 million yuan, an increase of 78.11% over the same period last year; Achieved earnings per share of 0.25 yuan, an increase of 78.57 percent over the same period last year.
Obviously, lithium products contribute a lot to Yahua Group’s operating revenue, while its contribution to profits is relatively small (see Table 9).
In this case, Yahua Group still increases the production capacity of lithium products. According to the financial report, Yahua Group will promote the first phase of the Ya'an project by 20,000 tons in 2018, and at the same time carry out preparations for the construction of 20,000 tons of lithium hydroxide in the second phase; after the completion of the project, Together with the currently owned Xingye Lithium Industry (wholly owned) 6,000 tons of lithium hydroxide production capacity, National Lithium Salt (holding 56. 26%) 5000 tons of Lithium Hydroxide and 7000 tons of Lithium Carbonate Capacity, around 2019, it will With a lithium salt production capacity of 38,000 tons, 2020 will have 58,000 tons of lithium salt production capacity.
One of the foundations of Yahua Group's overweight lithium production capacity is its lithium resource protection. According to the financial report, Yahua Group will continue to enrich the lithium resource reserves for lithium industry development in the future and provide sufficient lithium resource protection for the development and expansion of the lithium industry: First, through It has reached a long-term supply agreement with Galaxy Lithium, an important lithium concentrate producer in Australia, to provide the most basic resource guarantee for the company's stable production of lithium salts. The second is Liganggou Spodumeneite Mine, Aba, Sichuan Province, which was developed in cooperation with Chueneng Investment. The proven reserves are 521.85 million tons of lithium oxide. The third is to take shares in Australian Core Corporation to acquire the lithium mineral underwriting rights. It is worth mentioning that Core Corporation owns 100% mineral rights of Phoenix lithium mine, and the mining area is about 400 In the Northern Territory of Australia, it is composed of four mines: BP33, Far West, Ahoy and Grants. The mine is located in the plains. The surrounding hydropower roads are well-equipped and close to the port. The Zhazi block has been JORC standard exploration report, there are still 25 unseen historical pegmatite mines and several larger pegmatite targets to be drilled.
The resources are guaranteed, but the finances do not seem to be fully prepared yet. Although the Yahua Group’s asset-liability ratio is low, its solvency is generally (see Table 10), and the cash reserves are not enough to complete the expansion of the Ya'an project, and it is bound to operate on debt. This may have a negative impact on the construction of the project.
Jiangte Motor's expectations
For the development of Lithium - Lithium carbonate - cathode material - New Energy Motor - new energy vehicles more complete lithium energy new energy industry chain, Jiang Te Motor, the development of the lithium industry is imperative.
In 2017, Jiangte Motor achieved operating revenue of 3.375 billion yuan, a year-on-year increase of 12.75%; total profit of 329 million yuan, a year-on-year increase of 39.0%; and net profit attributable to the parent company of 281 million yuan, a year-on-year increase. 42. 58%; of which, lithium ore was selected for 100 million yuan, lithium carbonate was 163 million yuan, the amount is still small, but its gross profit margin is the highest (see Table XI). Obviously, its lithium business capacity The enlargement helps the company to increase its profitability.
Therefore, whether it is a strategic need, or the need for profit, it is imperative to increase lithium production capacity.
Jiang Te Motor recently announced that its subsidiary Lithium Silver Company's annual output of 5,000 tons of lithium carbonate production line has reached the design requirements, successfully achieved production, the use of lithium mica to produce 10,000 tons of lithium carbonate and the application of lithium concentrate production of 15,000 tons of lithium carbonate The production line will also be completed in the first half of this year. The company's lithium carbonate production capacity will reach 30,000 tons after it is completed.
According to the financial report, Jiangte Motor has a wealth of lithium resources, and has five mining rights and eight exploration rights in lithium porcelain quarry. It is the single largest shareholder of Australian listed company Tawana, which owns Western Australia Barr. With a 50% interest in the Bald Hill project, the mining area of this project is nearly 800 square kilometers. The exploration of high-grade lithium resources is nearly 20 million tons. The reserves are abundant.
Although, the expansion of lithium production capacity will increase its financial pressure (see Table 12); but, for tomorrow, Jiangte Motor had to fight.
Weihua’s follow-up
Weihua's traditional main business is the production and sales of medium- and high-density fiberboards, planting and sales of forest trees. In 2016, the company controlled the company’s business through the capital increase of Zhiyuan Lithium Industry and Wanhong Gaoxin. The company's business extends to lithium salt and rare earth products. In the field of energy materials, the new energy materials business and the wood-based panel business will form a pattern of development. Zhiyuan Lithium Industry is mainly engaged in the research and development, production and sales of basic lithium salt products. The designed annual production capacity is 40,000 tons of battery-grade lithium carbonate. Lithium hydroxide and lithium chloride.
According to the financial report, Zhiyuan Lithium Industry is still in construction period in 2017, which has little impact on Weihua's performance (see Table 13).
On the evening of March 29, Weihua announced that the company’s wholly-owned subsidiary, Zhiyuan Lithium Industry’s 40,000-ton lithium salt project, was officially put into production. The first-phase 1.3 million tons included 8,000 tons of batteries. Grade lithium carbonate and 5,000 tons of lithium hydroxide; the remaining 27,000 tons of capacity will also be completed by the end of the year.
In terms of lithium resource protection, in addition to the Albemarle lithium mine supply in the United States, Weihua also signed a long-term supply cooperation with another Australian company, and also promoted the inclusion of Jinchuan Oino Mining to acquire relevant resources.
Obviously, as a new entrant, Weihua shares have sufficient financial conditions to develop new businesses such as lithium, but they also risk greater uncertainty.
More than Weihua shares, there are more companies entering the field of lithium carbonate continuously: Yongxing Special Steel plans to invest in the construction of Yidong County, Jiangxi Province, with an annual capacity of 30,000 tons of lithium-ion materials (battery-grade lithium carbonate and lithium hydroxide). Annual production capacity of 2.4 million tons of mining and mineral processing projects; Xinhai Yi intends to participate in the construction of an annual capacity of 40,000 tons of battery grade lithium carbonate project; Jinyin River invests in the construction of lithium mica to prepare battery grade lithium carbonate and high value-added by-product comprehensive utilization projects (phase 1), etc. Wait.
High demand for lithium resources such as lithium carbonate and high prices have attracted a group of batchers. The first entrants have occupied more quality lithium resources (lithium and salt lakes) and are more competitive; newcomers There will be more enthusiasm but more uncertainty. In the next two to three years, with the introduction of design capacity, tight supply and demand balance for lithium carbonate will be broken, and prices will face more intense fluctuations, only with rich quality. Lithium mining resources, higher gross profit margins, and healthier financial structures, such as: Tianqi Lithium, and Lifan Lithium, are more likely to win and thrive in fierce competition.
