Lithium carbonate giant advances lithium battery industry

Recently, the reporter learned from the Australian listed company Galaxy Resources Co., Ltd. (hereinafter referred to as "Galaxy Resources") that the company's lithium carbonate production plant in Zhangjiagang will be put into operation by the end of the year, with an annual output of up to 17,000 tons, the quality of lithium carbonate produced Also higher, guaranteed content of 99.5% or more. In addition to the lithium carbonate processing plant, Galaxy Resources also plans to build an electric bike battery plant in Zhangjiagang. The first batch of production will reach 350,000 units.

The selection of Galaxy resources was the first to step into the electric bicycle battery. Galaxy's executive director Xie Geng said: “Unlike other countries, the Chinese government supports the development of electric bicycles in terms of policies and has a strong push in the market.”

Recently, the State issued the "Circular on Strengthening the Management of Electric Bicycles", which stipulates that the "speed of not more than 20 kilometers per hour and the total vehicle mass (weight) shall not exceed 40 kg" be the minimum standard for electric bicycles, which will accelerate the lithium battery in the electric bicycle market. Lead-acid battery replacement process.

"Many domestic battery manufacturers use manpower. Lithium batteries have a failure rate of around 20% after they leave the factory. Japan and South Korea's market tolerance is lower than the failure rate of 5%. In addition, the quality of products produced by domestic manufacturers is not stable, and long-term sales are signed. The agreement made it difficult.” Xie said that the Galaxy Electric Bicycle Battery Plant will use lithium iron phosphate battery technology.

It is worth noting that Li Shufu, chairman of Geely Automobile Group, quietly invested in Galaxy in his personal name last year. In the issuance of a convertible bond of approximately A$60 million in Galaxy Resources, Li Shufu subscribed a convertible bond of A$30 million (approximately 194 million yuan) in the name of its private company Strong Target International and could be converted into a company by 2013. stock.

The outside world had speculated that Galaxy Resources will jointly carry out technological research and development in the field of electric vehicle batteries with Geely Automobile [1.56-9.30%]. Xie Xie said: “Li Shufu is currently only a convertible bond investor of Galaxy Resources. At present, China's electric vehicle industry is not yet mature. There are great uncertainties in the upstream, downstream, and environment of electric vehicles, such as whether they use charging. Model or discharge mode, how specific standards, there are variables.” Xie thanks for frankly, for the application of lithium batteries in the car, the Chinese market is now the most valued is the electric bicycle market.

Xie Xie said: "Although the project has not yet been put into production, the company's 17,000 tons of lithium carbonate and 100% of downstream customers have signed a underwriting agreement." Because the factory produced lithium carbonate is also the lowest level of 99.5% of the battery-grade lithium content, and even The ability to reach 99.9% or more of the content, so popular with the market.

The Chilean SQM, U.S. FMC, and German CheMetall leaders dominated more than 70% of the world's lithium carbonate capacity. The latter two have been linked to hand-held prices since July 1st, with a price increase of around 20%. Galaxy Resources is investing in upstream mines through its upstream and downstream integration strategy.