Main content:
- Early layout of lithium resources: planning to build its own material base in 2007
- Well-developed material layout: Good production capacity of materials such as LFP
- Full coverage of industrial layout: an industrial chain with both product and cost advantages
- Summary and outlook: multiple competitive advantages lay the foundation for development
On June 24, 2022, GOTION, one of the Top 10 power battery companies in the world, signed a cooperation agreement with The National Energy and Mining Company of The Argentine Province of Jujuy (" JEMSE "). The two parties decided to jointly establish GOTION-Jujuy Mining in Argentina, planning to build battery-grade carbonic acid lithium production line. The signing of the cooperation agreement marks a further step in the globalization strategy of GOTION's supply chain. In this signing, the two parties agreed to establish a joint venture company to establish and operate a battery-grade lithium carbonate refinery in the Perico Free Trade Zone, Jujuy Province, to conduct research and development and production of lithium carbonate and other related products, with an annual output of 10,000 tons planned in advance.
The battery-grade lithium carbonate production line will be planned to build a second-phase battery-grade lithium carbonate production line with an annual output of 50,000 tons according to market demand. Since 2021, GOTION's materials layout projects have been continuously implemented, and the layout has been significantly accelerated. Judging from the frequent layout and scale of GOTION in the field of raw materials, GOTION is not only a top seven power battery company in the world, but also a battery materia giant.
1.Early layout of lithium resources: planning to build its own material base in 2007
GOTION attaches great importance to the research and layout of upstream raw materials for lithium batteries, and hopes to control it in its own hands. At present, five major material bases have been initially formed, which are located in Lujiang in Anhui, Feidong in Anhui, Yichun in Jiangxi, Wuhai in Inner Mongolia and Jujuy in Argentina. As early as 2007, GOTION began to plan to establish its own lithium iron phosphate battery material factory; and established its own material base in Lujiang, Anhui in 2015. After 7 years of development, Lujiang material base has become a first-class new energy material base in China.
In the first half of 2021, GOTION will build two major material base projects in Yichun, Jiangxi and Feidong, Anhui. Among them, 11.5 billion RMB was invested in Yichun to establish industrialization projects such as lithium carbonate production and lithium battery supporting materials, while GOTION's total investment in Feidong is expected to be 12 billion RMB. The construction content of the project covers the front-end raw materials and back-end battery recycling and cascade utilization of lithium-ion power batteries.
In 2022, GOTION not only invests in the construction of lithium-ion battery anode material projects in Wuhai, Inner Mongolia, China, but also deploys in Jujuy Province, Argentina, and reach a corporate cooperation with JEMSE in Argentina. And it has obtained the exploration and mining rights of lithium mineral resources in South America, and built a lithium carbonate plant. Thanks to the fact that the raw materials that account for the main cost of the battery are in their own hands, on the one hand, the GOTION can continue to start with materials, continuously break through the battery energy density, and improve the overall performance of the product; on the other hand, it can ensure stable supply of battery materials and cost competitiveness, making it can maintain an advantageous position in the competition.
In May 2022, GOTION officially released a semi-solid battery with a single energy density of 360 Wh/kg. Equipped with this model, the battery pack capacity and energy density are 160 kWh and 260 Wh/kg respectively, and the cruising range is up to 1000 km. In terms of lithium iron phosphate technical route, GOTION has achieved the industrialization of 210 Wh/kg lithium iron phosphate battery. The company's 230 Wh/kg lithium iron phosphate battery will gradually enter mass production by the end of 2022.
2.Well-developed material layout: Good production capacity of materials such as LFP
According to data, in 2021, the shipment of GOTION lithium iron phosphate material will exceed 50,000 tons, with a market share of 10.4%, ranking third in China, second only to HUNAN YUNENG and Dynanonic. As a leader in the R&D and production of lithium iron batteries in China, GOTION has an early material layout and is mainly self-supplied. With the gradual release of GOTION's annual production capacity of 200,000 tons of lithium iron phosphate materials in August this year, its self-supply capacity of lithium iron phosphate materials will be greatly improved, and GOTION's lithium iron phosphate material shipments, market share and ranking are expected to rise.
The annual production capacity of lithium carbonate is planned to exceed 120,000 tons. With the blessing of lithium mines, the volume of GOTION may need to be reassessed. In the second half of 2021, the price of lithium carbonate rose from 50,000 RMB/ton to the highest point of 510,000 RMB/ton in less than a year, an increase of more than 10 times, which completely deviates from the value law that the price fluctuates around the value. At the beginning of the new year in 2021, GOTION began to deploy lithium resources with its ability to predict the market.
|
company |
2021 |
2022E |
2023E |
2024E |
2025E |
|
GOTION |
- |
2 |
4 |
6 |
12 |
|
N |
- |
- |
7.5 |
7.5 |
20 |
|
NS |
6 |
6 |
6 |
6 |
6 |
|
JL |
2 |
2 |
4 |
4 |
6 |
|
YX |
1 |
3 |
3 |
5 |
5 |
|
JT |
3 |
3 |
3 |
3 |
3 |
|
Total |
12 |
16 |
28 |
32 |
52 |
Table 1 Capacity planning of major lithium mining companies in Yichun (LCE, 10,000 tons)
According to the data, the price of lithium carbonate in June 2022 exceeded 450,000 RMB/ton, and lithium carbonate continued to remain high. At the same time, the surge in lithium prices this year has significantly expanded the increase in the valuation of lithium mining companies. Based on the current annual production capacity of 120,000 tons of lithium carbonate deployed by GOTION in Yichun, assuming that the price of lithium in the future stabilizes to half the current price - 225,000 RMB/ton, after deducting costs, the net profit is expected to reach 22 billion RMB. With a valuation of 27 times the average PE of GanfengLithium and TIANQI LITHIUM, the industry leaders, the new valuation of GOTION alone should not be underestimated.
|
company |
2021 |
2022E |
2023E |
2024E |
2025E |
|
GanfengLithium |
- |
2 |
4 |
6 |
12 |
|
TIANQI LITHIUM |
- |
- |
7.5 |
7.5 |
20 |
|
ZANGGE MINING |
6 |
6 |
6 |
6 |
6 |
|
CHENGXIN LITHIUM |
2 |
2 |
4 |
4 |
6 |
|
JIANGTE MOTOR |
1 |
3 |
3 |
5 |
5 |
|
TMC |
3 |
3 |
3 |
3 |
3 |
Table 2 Market value of major lithium mining companies in May 2022
3.Full coverage of industrial layout: an industrial chain with both product and cost advantages
Currently, GOTION is building a complete industrial chain, which covers the mining, selection, smelting and deep processing of lithium resources, key materials and spare parts for lithium batteries, lithium ion batteries, green and high-efficiency energy storage batteries, and new energy vehicles. In terms of upstream raw materials, so far, GOTION has relevant layouts in upstream minerals, cathode materials, anodes, electrolytes, separators, copper foils, recycling and other raw materials.
Since its establishment, GOTION has rapidly realized the layout and production of main raw materials by means of self-made and joint ventures through continuous chain extension, supplementation, and strengthening of the chain, and has built a strong raw material guarantee system through innovative business models. In the upstream materials and raw materials of the battery, the company has invested in technology and the layout of resources in the whole industry chain. This two-wheel drive of "technology + resources". On the one hand, it ensures that the company's battery manufacturing and cost are controllable, and on the other hand, it more effectively guarantees the improvement of battery technology from the chemical system, thereby enhancing the company's product competitiveness.
4.Summary and outlook: multiple competitive advantages lay the foundation for development
In recent years, GOTION has continuously optimized the construction of the whole industry chain system and accelerated the implementation of resource-side projects. Its upstream material layout has covered most of the lithium battery production raw materials such as lithium, cobalt, nickel, precursors, ternary materials, LFP materials, lithium titanate, cathode, anode, copper foils, separators, electrolytes, additives, etc. At present, five major material bases have been initially formed, which are located in Lujiang in Anhui, Feidong in Anhui, Yichun in Jiangxi, Wuhai in Inner Mongolia and Jujuy in Argentina.
Among them, the Lujiang base focuses on the development and production of lithium iron phosphate and ternary cathode materials. The ternary cathode material is an important part of the ternary lithium battery. The materials of Feidong Base mainly cover the front-end raw materials of batteries and the recycling and cascade utilization of the back-end. Lithium-ion battery anode material projects are deployed in Wuhai, front-end mining and lithium carbonate projects are deployed in Yichun and Argentina. The layout of GOTION in raw materials creates technology and cost advantages for the company in future competition, and lays a solid foundation for the company's long-term development.
Related article: Top 10 lithium battery ternary material companies