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lithium prices reach record high in china

by:HGB     2020-06-15
Earlier this month, South Korea-based LG Chem (OTC:OTC:LGCEY)
Announced plans to build the largest lithium in Europe
By the end of 2018, the ion battery factory in Poland.
The global automotive industry has released a number of products that provide insight into the end of the decade for electric vehicles.
The recent scandals over emissions control and the growing pressure from the international community on the automotive industry to cut emissions have helped speed up the transition schedule.
In recent weeks, both Britain and France have said new gasoline and diesel vehicles will be banned by 2040, while the Chinese government has said it will increase production of electric vehicles by 2020.
In addition, the decline in battery prices and the increase in global manufacturing capabilities have attracted investment in the entire supply chain from lithium exploration to electric vehicle manufacturing facilities.
Battery prices dropped from $1,000 per kilowatt hour in 2010 to less than $250 per kilowatt hour in 2016.
During 2017, it was clear that the electric power of the automotive industry was going smoothly and that, driven by political, environmental and economic factors, significant changes were expected at the end of the decade.
LG Chemical will invest $1.
6 billion of the new plant, which will allow the company to produce up to 100,000 electric vehicle batteries.
Volkswagen Group (OTC:VLKAY)
Plans to produce 3 million electric vehicles a year by 2025 indicate a significant increase in the battery supply chain.
It can be expected that the factory recently announced by LG Chem will not be the largest in Europe because there is no shortage of automakers looking for safe battery supplies.
Renault-Jaguar, Volkswagen Group
Both Nissan and Daimler have announced plans to build electric vehicles, some of which will build or expand their battery manufacturing capabilities.
Automakers see batteries as a key component of their success, which will attract more investment throughout the supply chain. Toyota Tsusho (
International trade department of Toyota Motor (NYSE:TM)
Under the joint venture with Australia
Lithium, based in Orocobre, has successfully expanded their lithium carbonate plant in northern Argentina.
Earlier this year, the joint venture announced that it would play a greater role in the global supply chain and pledged to double its existing production capacity by 2019 (
See: oroco\'s rapid expansion plan in Japan and the Puna plateau).
After Toyota promised to increase lithium production, the lithium battery of Prius Prime plug announced
Hybrid electric vehicles from Panasonic (OTC: OTCPK: PCRFY)
At least until the end of ten years.
The company expects the market to remain stable. state lithium-
Ion batteries can be integrated into their electric vehicle range by 2022.
In the past few years, all these macroeconomic trends have greatly increased the price of lithium carbonate.
In 2014, the Toyota Olaroz project was built under the assumption that the price of lithium obtained from the customer would be $5,500.
LCE range 6,000 T (
Orocobre production on schedule in August: Shares rose by more than 30% in 2014).
On August 2017, the joint venture announced that it was achieving a consistent sales price of more than $10,000, a significant increase of more than 80% over the 2014 pricing forecast.
In recent weeks, it has been reported that it is becoming more and more difficult to find lithium carbonate battery materials as global suppliers strive to increase
Lead to production shortage
Bottleneck terms across the supply chain.
In October, the price of lithium carbonate 99% technology and industrial grade rose by more than $14,000 in spot prices.
It is expected that by 2019, as the automotive industry begins to increase battery manufacturing to meet the production plan of electric vehicles, meaningful new supply will enter the global market (
See: lithium Chong-
The potential shortage of supply led to a series of activities).
In addition, the price of materials shipped to Asia continues to be lower than the domestic spot price in China.
Producers and consumers of raw materials expect spot prices in China to rise soon.
Lithium carbonate prices in China rose to $21. 1-26.
From $20/kg in October 12. 1-25. Before 3/kg.
In Europe, spot prices for technology and industrial lithium carbonate 99% rose to $14. 5-
17/kg from $13 in October 12. 5-
Battery level is 17/kg at 99.
5% increased to $15. 5-19/kg from $14. 5-18/kg.
Prices of companies exporting products to China\'s domestic market are expected to be adjusted in the near future, as a shortage of white materials spreads into the lithium extraction business globally including active miners and exploration companies.
Despite the rapid growth in demand in the lithium market, new investments in lithium and hard rock businesses in the green sector have limited the number of participants supplying the global market.
Today, only a small number of listed companies can invest, including: ebman (NYSE:ALB)
Quimica y Minera SA in southern Chile. (NYSE:SQM), and FMC Corp. (NYSE:FMC)(
See: lithium mine-
Examine opportunities to produce oligopolistic monopolies).
As mentioned earlier, Orocobre and project partner Toyota have advanced the Olaroz project into commercial production, but about 11,000 t lce has been produced in fy207. the nameplate capacity is 17,000See: Orocobre -
Road to lithium production in Argentina).
The lithium primary exploration market is another world full of lithium primary exploration companies.
While it is difficult to understand, investing in lithium primary products should be considered highly speculative.
Considering that in the best decade, the only Orocobre has managed to bring a new green low-cost lithium salar to market (
See: lithium Chong-
The potential shortage of supply led to a series of activities).
However, for investors who have some interest in speculative investment, I recently opened up a position to gain insight into the beneficial lithium that is actively exploring lithium brine in northern Argentina (
See: Advantage Lithium-
Why have I been in office recently)
For investors seeking moderate exposure to the lithium ore and exploration industry, they can consider buying the Global X lithium technology ETF (NYSEARCA:LIT)
Who focuses on investing in the entire lithium cycle from resource extraction and processing to battery production and electric vehicle manufacturing.
The fund has a large stake in first-class lithium production companies including FMC Corp and Albemarle.
In addition, the fund holds a considerable stake in battery manufacturers such as BYD (OTC: OTCPK: BYDDF)
Panasonic and LG Chemical and California-
Tesla Motor (NASDAQ:TSLA).
Disclosure: I am/We are long orkov, avlf.
This article was written by myself and expressed my views.
I received no compensation (
In addition to Seeking Alpha).
I have no business relationship with any stock company mentioned in this article.
Editor\'s note: This article discusses one or more securities that are not traded on major US securitiesS. exchange.
Please note the risks associated with these stocks.
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