The price of lithium carbonate continued to rise steadily. At present, the upstream and downstream markets are in a state of resumption of production and work, so the market demand will gradually increase. Around mid-February, domestic lithium carbonate overhaul companies will gradually resume normal production, and the supply will also increase. In the downstream, although cathode material companies have slightly reduced production, the demand for lithium carbonate is still at a high level. According to Anko, the sales director of Shenzhen Manly Battery Co., Ltd in Shenzhen, as the downstream market gradually enters the production track after the festival, the demand for lithium carbonate will continue to increase, and it is expected that the price of lithium carbonate will continue to rise in the short term.
Cinda Securities pointed out that the overall sales data of new energy vehicles on the demand side in January has not been released, but judging from the sales data of major domestic new energy vehicle companies, the market is characterized by a low season. According to Gaogong Lithium's statistics, around the Spring Festival in 2022, there will be 9 projects involving power and energy storage batteries, with a total investment of over 79.8 billion yuan and a planned production capacity of over 176GWh; 6 power battery projects have been signed, with a total investment of over 108 billion yuan , the production capacity is planned to exceed 215GWh. On the one hand, the expansion of power battery production stems from the strong market demand, and on the other hand, market orders provide certain space for the release of new production capacity. The supply of lithium resources is not expected to improve significantly in the short term, and the price of lithium may continue to remain high in the context of low demand in the off-season. At the current lithium price level, the PE valuation of some lithium salt companies is close to 10 times. It is expected that the performance of lithium sector companies will continue to exceed expectations in 2022, and the sector is expected to usher in a valuation repair market.
CITIC Securities pointed out that the production of lithium mines in Australia declined in 21Q4 due to labor shortages and other factors, showing that there is a large uncertainty in the supply of lithium mines in Australia. /Ton. The price of lithium ore continues to rise sharply and Australian lithium ore enterprises seek to extend the industrial chain, posing challenges to the raw material guarantee of domestic lithium salt enterprises. It is expected that companies that take the lead in deploying lithium resources outside Australia and companies that build lithium conversion capacity in Australia will benefit.
Shenzhen Manly Battery Co.,Ltd specializes in the production of energy storage batteries, electric vehicle batteries, artificial intelligence batteries, AI robot batteries, 5G base station batteries, etc. Contact: sales@manlybatteries.com
