Original Title: Ganfeng Lithium Industry Re-locks Tesla’s Demand for Long-term Lithium Hydroxide High Growth
● Our reporter Cui Xiaosu
On the evening of November 1, Ganfeng Lithium issued an announcement that the company and its wholly-owned subsidiary Ganfeng International signed a “Product Supply Contract” with Tesla, which agreed from January 1, 2022 to December 31, 2024 , The company and Ganfeng International supply battery-grade lithium hydroxide products to Tesla. The actual purchase quantity and sales amount are subject to the purchase order issued by Tesla.
Re-lock the long order
The announcement shows that the contract performance period is from January 1, 2022 to December 31, 2024. This contract is a sales contract for the company’s existing product areas. The company has the ability to perform this contract in terms of capital, personnel, technology and existing production capacity. The company stated that the signing of this contract is conducive to strengthening the long-term and stable cooperative relationship between the company and Tesla, is conducive to improving the company’s sustainable profitability, and is conducive to the company’s long-term development. The contract will be fulfilled and confirmed revenue from 2022 to 2024, which will have a positive impact on the company’s operating performance in the aforementioned years.
Ganfeng Lithium’s third quarterly report shows that from January to September this year, the company achieved operating income of 7.054 billion yuan, an increase of 81.19% year-on-year; net profit attributable to shareholders of listed companies was 2.473 billion yuan, an increase of 648.24% year-on-year.
On October 27, the company disclosed in the Investor Survey Minutes that the company’s newly built lithium hydroxide project with an annual output of 50,000 tons has been released smoothly. This year, the production capacity of lithium salt products has been greatly increased, and product prices have continued to rise since the beginning of this year. The company continues to expand the production capacity of lithium salt products. At present, the company has formed a production capacity of 43,000 tons/year of lithium carbonate and 81,000 tons/year of lithium hydroxide.
This is not the first time that Ganfeng Lithium has provided lithium hydroxide products to Tesla. On September 21, 2018, Ganfeng Lithium issued an announcement that the company and its wholly-owned subsidiary Ganfeng International signed a “strategic cooperation agreement” with Tesla, which agreed from January 1, 2018 to December 31, 2020 (Can be extended for three years), Tesla designated its battery supplier to purchase battery-grade lithium hydroxide products from the company and Ganfeng International. The annual purchase quantity is about 20% of the company’s total production capacity of the product that year, and the amount is finalized. Prevail.
Prices are expected to continue strong
The high nickel ternary material prepared with lithium hydroxide is considered to be one of the main solutions to improve the performance of power batteries through the positive electrode.
Industry insiders pointed out that in the context of the continued high enthusiasm for new energy vehicle consumption, Tesla bypassed various battery factories and continuously increased the lock-in of upstream lithium hydroxide products to ensure a stable supply of raw materials. The mass production of research batteries is advancing.
A few days ago, Tesla revealed in the third quarterly conference call that its self-developed 4680 battery will be unveiled in the first half of 2022, and it may be the first to be carried on Model Y. Tesla first announced the 4680 electrodeless battery on battery day last year. Tesla CEO Musk said that the 4680 battery will be mass-produced on the new assembly line of the factory, and the annual output of the battery is planned to reach 10GWh by the end of 2021.
Caixin Securities pointed out that the ternary lithium-ion battery is driven by the need for high mileage and cost reduction to accelerate its development in the direction of high nickel and low cobalt, which further promotes the high growth of demand for lithium hydroxide. The sales of electric vehicles are expected to increase. Lithium hydroxide is expected to benefit from the high boom of ternary installations, and the price of lithium hydroxide is expected to continue to be strong.
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