Lithium hydroxide supply is concentrated in the leading price is still low

At present, the price of lithium hydroxide is still bottoming in the 'L' shape after the small drop since March this year. The demand is mainly concentrated overseas, and prices have not risen due to factors such as the epidemic. Every time reporter Xu Shuai every time editor Wen Duo, a well-known new energy car company Tesla and Yahua Group (002497, SZ) signed a long-term order, and the two sides locked in the supply and marketing of lithium hydroxide in the next five years. On the evening of December 29, Yahua Group disclosed a notice that the company’s wholly-owned subsidiary Yahua Lithium (Ya'an) Co., Ltd. (hereinafter referred to as Ya’an Lithium) signed a battery-grade lithium hydroxide supply contract with Tesla , It is agreed that from 2021 to 2025, Tesla will purchase battery-grade lithium hydroxide products from Ya'an Lithium with a total value of 630 million to 880 million U.S. dollars. In addition to the total purchase amount, an insider of Yahua Group told the reporter of 'Daily Business News' that the specific price and output involve commercial secrets and it is not convenient to disclose. Only the price of lithium hydroxide at home and abroad is different. At present, Yahua Group's lithium hydroxide output is 33,000 tons/year, and another 20,000 tons will be put into production in the following year. It is worth mentioning that while Tesla locked the long-term order of lithium hydroxide, the price of lithium hydroxide products is still bottoming out. The company's output is not only supplied to Tesla, Ya'an Lithium and Tesla signed a supply contract this time, which means that Tesla has locked in the production of lithium hydroxide in the next five years with Yahua Group. Stimulated by this positive information, the Yahua Group, which had a limit of yesterday, reached a daily limit today (December 30), and there were still 250,000 orders at the close of the market. The announcement of Yahua Group shows that the agreed quantity and price of the contract between the two parties shall be implemented in accordance with the agreement, but the company did not disclose the specific price. According to the current battery-grade lithium hydroxide price of 50,000 yuan/ton or more, the maximum output value of the annual output of 33,000 tons of lithium hydroxide in Ya'an Lithium is 1.65 billion yuan. If the price remains unchanged and the output remains unchanged, the output value of lithium hydroxide in Ya'an Lithium will be over 8.25 billion yuan in the next five years. So how much lithium hydroxide output will Yahua Group specifically leave to Tesla? 'Our lithium hydroxide is not only supplied to Tesla, but also to other customers.' Zheng Lu, the representative of Yahua Group's securities affairs, said that the commercial contract signed with Tesla involves a lot of confidential information, and only two points can be revealed: hydrogen The overseas price of lithium oxide is not the same as the domestic price, and the price for each customer is also different. As the domestic lithium hydroxide company wants to become a Tesla supplier, certification and other links are also involved. Therefore, Yahua Group also stated in the notice that the signing of the contract is an important achievement for the company's lithium products to open up the supply chain of internationally renowned car companies. Zheng Lu said that the company is currently actively exploring overseas markets and negotiating with more overseas customers. The price of lithium hydroxide is still bottoming out. The reporter of 'Daily Business News' noticed that 33,000 tons are only the current lithium hydroxide output of Yahua Group, and the company will have 20,000 tons of lithium hydroxide output in the next year. According to the existing lithium hydroxide production plan, Yahua Group's lithium hydroxide production will reach 53,000 tons/year by then. There are two main types of automobile power lithium batteries: lithium iron phosphate batteries and ternary lithium batteries. From the current market situation, ternary power lithium batteries account for a relatively high proportion and have overwhelming advantages. Low-end ternary lithium batteries can use lithium carbonate as raw materials, but high-end ternary lithium batteries must use battery-grade lithium hydroxide as raw materials. Compared with lithium carbonate, lithium hydroxide has higher requirements on impurities, taste and craftsmanship. Correspondingly, the lithium carbonate market is more fragmented, while the lithium hydroxide market is more concentrated. At present, domestic companies with large lithium hydroxide production include Ganfeng Lithium, Yahua Group and Tianhua Super Clean. According to the data of Baichuan Information, the price of battery-grade lithium carbonate and battery-grade lithium hydroxide have been around 50,000 yuan/ton recently. However, compared with the price difference in 2017, the price difference between lithium carbonate and lithium hydroxide is now very small. From the perspective of price trends, since September this year, the price of lithium carbonate has started a wave of upward trend. After the small drop in lithium hydroxide since March this year, the price is still bottoming in the 'L' shape. A technician from a lithium carbonate processor told the 'Daily Business News' reporter that the rise in lithium carbonate prices was due to the sharp drop in the previous period, and domestic demand drove a natural price rise. The demand for lithium hydroxide is mainly concentrated overseas, and the price has not risen due to the impact of overseas epidemics. But according to industry insiders, benefiting from the rising trend of global new energy vehicles, demand for lithium hydroxide will also increase. Disclaimer: Some pictures and content of articles published on this site are from the Internet. If there is any infringement, please contact to delete.