The Popularity of New Energy Vehicles has Driven Up The Price of Raw Materials in The Upstream of Its Industrial Chain

Since 2022, the price of battery-grade lithium carbonate has risen to a maximum of 503,000 CNY/ton, an increase of 83%. Judging from the low price of 40,000-50,000 yuan per ton in the second half of 2020, the price of lithium carbonate has skyrocketed more than 10 times in less than two years.

The average market price of lithium iron phosphate was 163,000 CNY/ton, an increase of 52.34% from the beginning of the year and a year-on-year increase of 229.29%.

The average price of lithium battery grade PVDF is about 490,000 CNY/ton, an increase of 10.11% from the beginning of the year and a year-on-year increase of 308.33%.

The average price of lithium hexafluorophosphate is about 430,000 CNY/ton, a year-on-year increase of 95.45%.

The rising prices of these chemicals have made many chemical companies see the benefits and prospects, and also ushered in many cross-border players. According to incomplete statistics, there will be more than 50 domestic lithium battery cathode material expansion projects in 2021, and more than 60% of the projects are related to lithium iron phosphate materials. Entering 2022, the enthusiasm of players for their investment has continued unabated. Among them, the investment boom set off by titanium dioxide giants from "outside the territory" is particularly eye-catching.

These titanium dioxide enterprises are generous, with tens of billions of capital and hundreds of thousands of tons of production capacity. Longbai Group, China Nuclear Titanium Dioxide, Chuanfa Lomon, Anada and others have planned a large amount of iron phosphate and lithium iron phosphate production capacity based on the comprehensive advantages of raw material cost.

Longbai Group: It is proposed to build a total of 550,000 tons of lithium iron phosphate and a total of 300,000 tons of artificial graphite anode materials. It is planned to invest and construct a battery-grade lithium iron phosphate project with an annual output of 150,000 tons and a titanium dioxide post-processing capacity expansion project (200,000 tons/year) in Nanzhang County, with a total investment of 3 billion yuan.

Jinpu Titanium Industry: Signed the "Strategic Cooperation Framework Agreement" with the Management Committee of Anhui (Huibei) New Coal Chemical Synthetic Material Base, and plans to build 200,000 tons/year battery-grade iron phosphate, 200,000 tons/year lithium iron phosphate and other new energy battery materials Integrated project, the total investment of the project is about 10 billion yuan.
CNNC Titanium Dioxide: New Materials Research Institute will be established to carry out cutting-edge and applied research in the fields of key materials for lithium-ion batteries and energy storage technology.

Ananda: Tongling Nayuan, a holding subsidiary, plans to establish a joint venture company by introducing strategic investors. The joint venture company will build a 50,000-ton/year high-performance iron phosphate project with a total investment of 316 million yuan.

Chuanfa Lomon: Deyang Chuanfa Lomon New Materials Co., Ltd., a wholly-owned subsidiary, invested 12 billion yuan in De'A Industrial Park to build the Deyang Chuanfa Lomon lithium battery new energy material project; among which, 200,000 tons of lithium iron phosphate was built , 200,000 tons of iron phosphate production line.