The Tight Material that can't be Bought is Lithium Carbonate 99.5%

According to Shanghai Steel Association data, on February 10, battery grade lithium carbonate rose 10,000 CNY/ton and the average price was reported at 400,000 CNY/ton; before that, on February 9, lithium carbonate rose 10,000 CNY/ton and the average price was reported at 390,000 CNY/ton.

The average price of lithium carbonate in the last four days (7th to 10th) given by Xinfang Information is 375,000 yuan, 380,000 yuan, 385,000 yuan and 385,000 yuan.

In a simple retrospective, the price of lithium carbonate just exceeded 300,000 yuan during New Year's Day this year. 40 days in, the price of battery-grade lithium carbonate has increased by about 35%.

In the past 40 days, the price of battery-grade lithium carbonate has risen by about 35%.

Reduced supply is one of the reasons for the price increase. "We produced normally during the Spring Festival, but affected by low temperatures and other effects, we have not been able to achieve full production, and the daily output is kept at about 70 tons per day." A salt lake lithium production company in Qinghai told reporters that the company did not stop lithium carbonate production during the Spring Festival because of the failure to digest orders before the holiday. "From the number of orders, supply and demand is still relatively tight, lithium carbonate sales price per ton are more than 350,000 yuan."

More critical is the continued increase in downstream demand. 2021, global lithium battery consumption, some lithium-ion battery manufacturers to accelerate capacity expansion, downstream cathode material orders pick up, lithium chemicals prices gradually rise, the surge in demand and the lack of new capacity of lithium resources led to lithium carbonate prices "take off".

Continue to rise! Lithium carbonate ton price approaching 400,000 yuan

For the recent "fire to the explosion" of lithium carbonate, the price has become the norm, and shows a trend of accelerated rise.

Ltd. on February 9, lithium carbonate price increases, industrial-grade lithium carbonate and battery-grade lithium carbonate prices are showing an increase, the final shipping price subject to actual negotiations.

A number of interviewed industry insiders said, electric carbon (battery-grade lithium carbonate) ton price breakthrough 400,000 yuan is just a matter of time.

"Price increases may partially affect the downstream cathode material manufacturers' production enthusiasm, but the current sales situation, door-to-door customers still lined up." A salt lake lithium enterprises, the recent upstream enterprises "no inventory" has become the norm, the seller has more say in the lithium carbonate transaction.

Up to when is the end? The attitude of many upstream manufacturers are very clear: tight balance has become consensus, there is still room to rise in the short term. Tibet, a salt lake lithium manufacturer said bluntly, 500,000 yuan is not impossible.

The face of lithium carbonate prices will continue for how long the question, although Tianqi lithium industry did not "positive answer", but also a clear statement: the bargaining power of upstream mining enterprises will become stronger.

"The lithium resource side due to its strategic significance, access and control of the difficulty will gradually increase, therefore, lithium resources will become a key factor in the medium and long-term development of the industry." The person in charge of Tianqi Lithium said that in the long run, with the development of lithium, energy storage battery industry, the importance of lithium resources will become more and more prominent, the bargaining power of lithium resources companies and industry chain status will continue to improve.

Chile's "nationalization" proposal to disturb the market?

South America salt lake development "uncertainty", but also to the recent hot lithium carbonate market "added a firewood".

In retrospect, Chile's Constituent Assembly passed a proposal in early February, submitted and adopted by the parliamentary environment committee, aimed at promoting the nationalization of copper, lithium and other strategic assets. Some analysts believe that the nationalization of Chile's lithium mines and other mineral resources is a key step forward.

For the salt lake power Chile's move, some analysts say that in the medium to long term, the move may lead to Chilean lithium supply will be somewhat restricted, bringing uncertainty to the global supply of lithium resources.

"Now lithium carbonate market is good, does not mean that the long-term must be good, everyone's goal is clear, in the premise of reasonable development of resources, try to meet the market demand." Familiar with the lithium carbonate industry, although Chile proposed lithium mine "nationalization", but the proposal still needs to be voted on by all members of the Chilean parliament, the specific impact needs to be further observed.

From the reality of the situation, the domestic enterprises "sea mining" mood has not been affected too much.

For example, Zangger Mining disclosed on the evening of February 9 that the company signed an exclusive strategic cooperation agreement with Super Resources to invest and cooperate in the Laguna Verde salt lake lithium project in Argentina, in which Super Resources holds a 100% stake, to establish an exclusive strategic partnership.

The announcement shows that Super Resources is a Canadian mining company mainly engaged in lithium resources exploration and development, and owns 100% of the lithium rights of Laguna Verde Salt Lake in Catamarca Province, Argentina.

Argentina is located in the salt lake area of the world famous lithium triangle, which is rich in salt lake lithium resources. The company's Laguna Verde salt lake claim is located within the core area of the lithium triangle. Two rounds of surface sampling results show lithium ion grades as high as 1270 ppm.

This shows that in the growing demand for lithium carbonate, "win-win cooperation" is also the trend. A brokerage research report analysis, is expected to resonate upward in 2022 global lithium prices, integrated production enterprises will benefit.

"In 2022, with the elimination of the impact of long-order pricing of major companies in South America and the continued upward movement of lithium concentrate prices, global lithium prices are expected to resonate upward."

A recent research report by CITIC Securities suggests that lithium carbonate prices in South America are expected to rise to $25,000/ton in the first half of 2022, while lithium concentrate prices in Australia will rise above $3,000/ton and lithium product prices in the Chinese market will remain high.