As lithium hexafluorophosphate price bottoms out, Tianji Shares (002759.SZ) sells off production expansion plan again.
On August 2, Tianji Shares announced that the company had signed a letter of cooperation with the Ruichang Municipal People's Government and planned to invest 3 billion yuan to build a new factory with an annual output of 30,000 tonnes of lithium hexafluorophosphate. 6,000 tons of high-purity lithium fluoride and by-product support projects. The project construction period is 18 months, with an annual output value of 6 billion yuan.
Lithium hexafluorophosphate is the main raw material of lithium battery electrolyte, accounting for about 43% of the total electrolyte cost. Information shows that when Tianji Holdings was listed in 2015, its business had nothing to do with the newIts main products and energies were ceramic cooking appliances. The year after its listing, it officially entered the field of lithium battery materials through the acquisition of Jiangsu Xintai Materials Technology Co., Ltd. (hereinafter referred to as Xintai Materials).
However, lithium hexafluorophosphate is a cyclical product from 2016 to the second half of 2020, the spot price experienced strong fluctuations, from 420,000 yuan/ton to 69,500 yuan/ton. Tianji Shares, which hopes to integrate lithium hexafluorophosphate into its second growth curve, also suffered its first loss after the company's IPO in 2020, with a net profit of -11 million yuan.
However, as lithium batteries return to the spotlight, the price of lithium hexafluorophosphate will soar again in 2021, once exceeding 500,000 yuan/ton, which will enablefor Tianji's net profit to increase 70 times to 745 million yuan. In this context, Tianji Shares also joined the production expansion team.
In August 2021, Tianji Shares revealed that its subsidiary Xintai Materials signed a “Project Investment Letter of Intent” with Jiangsu Changshu New Materials Industrial Park and Ruitai New Materials (301238 .SZ) to jointly establish a new The company invested 3 billion yuan to build a production and sales project with an annual output of 30,000 tons of lithium hexafluorophosphate and lithium salts such as lithium fluoride and calcium chloride.
On December 6 of the same year, Tianji Co., Ltd. revealed that the above investment added Ningde New Energy Technology Co., Ltd. as a cooperation partner of Xintai Materials, a wholly owned company. subsidiary of Tianji Co., Ltd., owns70% of the shares of the newly established project company Ruitai New Materials and Ningde New Energy hold 25% and 5% of the shares respectively. Subsequently, Tianji Shares issued a private placement announcement to raise 2.11 billion yuan in funds, which were mainly used for the expansion projects mentioned above.
In terms of production capacity, Tianji Co., Ltd. has an existing production capacity of 18,160 tons, plus the 30,000 ton production capacity jointly built by the company and Ruitai New Materials, and the recently disclosed 30,000 tons. Production capacity of approximately 7.8 tons. The company's future lithium hexafluorophosphate production capacity is expected to be around 7.8 thousand tons.
From an industry perspective, many companies also have relevant production expansion plans.
The first rung of polyfluorocarbon revealedthat as of the end of April this year, the company had a production capacity of 30,000 tons of lithium hexafluorophosphate and a planned production capacity of 55,000 tons in 2022. The shipping target annual production of lithium hexafluorophosphate is 35,000 to 40,000 tons.
Tianci Materials announced in its investor relations activity report that the company's 90,000-ton liquid lithium hexafluorophosphate device with annual production will be put into operation in the third quarter of this year and that part of its production capacity will be released in the fourth quarter.
It should be noted that with the release of new production capacity, in 2022,The price of lithium hexafluorophosphate fell from a maximum of around 600,000 yuan to a minimum of 250 000 yuan. It is difficult for lithium hexafluorophosphate manufacturers to achieve excess profits in the short term.
But other data shows that the price of lithium hexafluorophosphate has recently rebounded. According to Flush Data, the spot price of lithium hexafluorophosphate reached 267,500 yuan/ton on July 22, a monthly increase of 9.18%.
Cathay Securities mentioned in a recent research report that costs are driving up demand and the price of lithium hexafluorophosphate is expected to bottom out.
Oriental Securities estimated that the price of lithium hexafluorophosphate has bottomed out, and companies with well-integrated configuration in the electrolytic linkage will enjoy strong cost advantages and long-term competitiveness, and their market share is expected to increase. continue to increase in the future.
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