Financial Associated Press, November 3 (Reporter Li Zijian)Whether Canada requires domestic companies to divest mineral resources in Canada, or explores the establishment of a “lithium OPEC”, the actions surrounding key raw materials in the lithium battery industry are becoming more and more obvious and frequent. Under the circumstance that the upstream and the control of pricing power are tightened, the price of lithium will be blurred again in 2023. On the other hand, some analysts believe that the increasing evolution of overseas resource countries such as Australia and Canada to China’s investment review and the pursuit of maximizing resource benefits in South America will slow down the process of overseas resource development, or lead to high lithium prices. time is further extended.
On November 2, local time, on the grounds of so-called national security, Industry Canada required China Mining Resources, Zangge Mining, and Shengxin Lithium to divest their investments in key Canadian mining companies. For the response of the above-mentioned companies, see “Are foreign lithium mines not fragrant? The impact of three Chinese companies being “ordered” to withdraw from their investment in lithium mines in Canada”.
According to industry insiders, in fact, Canada has always conducted security reviews of key mineral investments. At present, due to the influence of international relations, the scope and boundaries of the review are indeed expanding, and the overall situation is tightening. At the same time, it is limited to new transactions, and there is no traceability. sex.
Under the rapid development of the lithium battery industry chain, the price of lithium as a key raw material is “rising all boats”, “From the perspective of resource supply, everyone is paying more and more attention to strategic resources, because lithium resources are relatively scarce and hot now, and countries are in the protection of The development of new energy is carried out on the basis of supplying domestic and guaranteeing its own rights and interests.” The above-mentioned person further analyzed.
From the perspective of global power battery installed capacity, China is undoubtedly the largest consumer of lithium. According to the global electric vehicle battery loading data released by SNE Research in September 2022, domestic companies in the top ten companies occupy 6 seats, accounting for more than 50% of the market.
In addition to the influence of Canada’s policy, South America’s “lithium triangle” countries – Argentina, Bolivia and Chile are considering the establishment of “lithium OPEC” to jointly set lithium sales prices. According to USGS (United States Geological Survey) data, the global lithium metal resources will be about 89 million tons in 2021, and the total resources of the “lithium triangle” will account for about 56% of the world.
Although Australia is still the world‘s largest producer of lithium and Bolivia’s output is lower, the “Lithium Three” foreign ministers said Australia may also agree to the idea of ”price synergy” if Argentina, Chile and Bolivia agree .
A related research report from Ping An Securities pointed out that the South American Lithium Triangle’s discussion on “Lithium OPEC” aims to take advantage of resource advantages, control the upstream supply to control the pricing power of lithium resources, and then allocate more huge profits brought by high lithium prices.
Some people from lithium mining companies said that the lithium industry is a cyclical industry after all. When the industry enters a trough, OPEC can avoid the decline in the valuation of lithium prices, which is conducive to the healthy development of the industry and the long-term stability of lithium prices.
There are also lithium ore business people who believe that “domestic enterprises do not realize the independent control of lithium resources as soon as possible, perhaps (lithium ore) will become the next supply pattern of iron ore.”
(Editor: Cao Jingchen)