China Li-ion Battery E-News 1602 (12 issues per year)

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Apr 13, 2016, 08:01 ET

LONDON, April 13, 2016 /PRNewswire/ -- In H2 Feb., 2016, China's Li-ion battery cell enterprises began to resume production, and drove up prices, by USD0.05/unit (RMB0.3/unit) commonly. This is mainly because the continuously rising prices of raw materials exerted heavy pressure on manufacturers. Also, the price up-regulations were accepted by the downstream.

Specifically, Hefei Guoxuan signed 2 big orders during the Spring Festival, value combined to surpass USD305.16 million (RMB2 billion). Foreseeable, its financial performance will progress rapidly in 2016.

- Cathode materials
Fairly flat market in H1 Feb.: the price of lithium carbonate at the end of Jan. rose sharply, catching cathode materials producers unawares with deficient stockup, and during the Spring Festival, producers suspended or cut down production
Resumption in H2 Feb.: mainly produced for already received orders, with small price fluctuations

- Anode materials: overall stable prices and fine shipments
The continuously rapid development of the alternative energy vehicle market fueled the investment into anode materials business. For instance, Truchum planned to invest USD45.77 million (RMB300 million) into constructing a 10,000 t/a high performance Li-ion battery anode material project

- Separator: stable market and strong demand
Many enterprises sought for capacity expansion. For instance, Sinoma intended to establish a JV for the construction of a 200 million m2/a Li-ion battery separator project

- Electrolyte: focus still on raw materials, lithium salts
"The domestic price of LiPF6 stays high, quotation even beyond USD61,032/t (RMB400,000/t) and expected to rise continuously," said electrolyte suppliers, "The short supply of lithium carbonate cannot be solved in the short run, increasing the operation pressure. Under this, we have no choice to only up-regulate prices."China's alternative energy vehicle industry is developing very rapidly. However, a considerable amount of waste power battery will be brought also. How to make comprehensive utilisation of these waste power batteries is a concern of the government as well as the society.

CATARC predicted that China will have 120,000-170,000 tonnes of waste power Li-ion batteries removed from alternative energy vehicles by 2020. Then, where will these batteries go?
Thanks to the rapidly developing alternative energy vehicle market, the full industry chain, involving battery materials, Li-ion battery and alternative energy vehicle, showed rises in their expected financial figures.
In Feb. 2016, Lifan announced to increase capital in its fully-owned subsidiary, Wanguang New Energy, for the better implementation of the Li-ion battery cell project.
On 18 Feb., 2016, Hefei Guoxuan signed a power Li-ion battery procurement contract with Nanjing King Long, which is expected to further solidify its position in the industry.

In Feb. 2016, Do-Fluoride announced the cooperation established with Yuhang Bus and Zhongneng Energy. This signals that the company has further extended the business of alternative energy vehicle.
On 23 Feb., 2016, Sinoma announced to launch a 200 m2/a Li-ion battery separator project. This is expected to break the monopoly by foreign enterprises in premium segment.
In Feb., 2016, Victory Precision announced the purchase of 10 Li-ion battery separator production lines at USD141.90 million (RMB930 million). This is expected to further enlarge the production capacity of wet process Li-ion battery separator for the company – probably to head the industry worldwide.

In Feb. 2016, MOF planned to spend 2 months in comprehensively inspecting 90 alternative energy vehicle producers subsidised by government in 2013-2015, aiming to rectify the "subsidy cheat" prevailing in the industry.
In Feb. 2016, the ternary materials based Li-ion battery industry had a heated debate on the MIIT's recent decision to "temporarily exclude the passenger vehicles that apply ternary materials based Li-ion battery from the catalogue of recommended alternative energy vehicle types".
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