LONDON, July 14, 2016 /PRNewswire/ -- In May-June 2016, several listed Chinese companies announced their plans of investment in the Li-ion battery business through production expansion, private placement, and enterprise acquisition. In fact, the increasing investment was directly stimulated by the continuous rapid development of the domestic alternative energy vehicle market.
At the end of May 2016, the application for listing on the 4th batch of enterprises that meet the Vehicle Power Battery Industry Standards was finished and the result will soon be released. This time, some foreign-funded enterprises are expected to be on the list.
In June 2016, J&R Fire Fighting was approved by the CSRC to purchase OptimumNano. It means that J&R Fire Fighting, a company engaged in the firefighting business, will enter the power Li-ion battery industry.
In June 2016, SOJO Electric increases an investment of USD19.73 million (RMB130 million) in Tianjin DG, aiming to further involved in the Li-ion battery industrial chain and gain new profit growth points.
On 14 June, 2016, Narada announced its plan to raise USD270.30 million (RMB1.78 billion) for the construction of a 2,300 MWh/a power Li-ion battery project. The project is expected to increase the company's production capacity of ternary power Li-ion battery significantly and further improve the company's product structure as well.
In June 2016, Beijing Saideli announced its plan to raise USD37.94 million (RMB250 million) for the construction of a Li-ion battery cathode material project, expanding the company's businesses from coating equipment and energy-saving materials to a broader scope.
After mid-June 2016, China's price of lithium carbonate stopped its continuous increase and began to fall back. This was mainly attributed to the introduction of the Vehicle Power Battery Industry Standards and the increase of lithium carbonate production capacity.
In June 2016, Geely plans to sell out its shares in Zhidou, declaring an end to their one-year cooperation.
In June 2016, Nanjing City issues the alternative energy vehicle subsidy policy and the EV charging price policy. It signifies the coming of intensive national and local policies on supporting the development of alternative energy vehicles.
On 6 June 2016, GAC Group announce its plan to invest USD 242.83 million (RMB1.6 billion) in constructing a 200,000 unit/a alternative energy vehicle project in Xinjiang Uygur Autonomous Region, the core zone of the Silk Road Economic Region, aiming to make full use of the local advantages to develop the alternative energy vehicle industry there.In June 2016, the Chinese Li-ion battery cell market runs smoothly. The prices of its upstream materials have begun to go down, so the profit margin of the product may increase in the future.
- Cathode materials:
The domestic price of lithium carbonate begins to decline, and that of lithium ferric phosphate (LFP) and ternary materials stops increasing. However, industry insiders reveal that the cathode material market is not active at the moment. Although the inspection of alternative energy vehicle cheating has been finished, the result hasn't been released yet. In addition, some downstream enterprises fail to meet the Vehicle Power Battery Industry Standards.
- Anode materials:
The domestic market of anode materials develops steadily, without significant fluctuations in prices. With increasing new orders from power battery enterprises, the domestic sales of anode materials has witnessed a YoY growth of 10–20%. This has pushed up the market share of artificial graphite, the major anode material of power battery.
The domestic market of separator goes on steadily. In 2016, the domestic demand for separator is expected to increase from the 900 million m2 last year to about 1.2 billion m2. This indicates a huge market potential of separator in China.
The domestic price of electrolyte remains relatively stable and profit of the product increase a little bit. It is mainly because the price of lithium hexafluorophosphate (LiPF6) has turned from increase to decline, though currently is still as high as USD60,708/t (RMB400,000/t). Electrolyte producers hope that the release of LiPF6 new capacity will help further cut the price of LiPF6, alleviating their production cost pressure.
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