Lithium battery material cobalt, cobalt raw materials concept shares

Cobalt is mainly used in industries such as cemented carbide and lithium batteries. From the global point of view, about 44% of the cobalt is used in lithium batteries, while in China, lithium batteries account for up to 76% of the demand for cobalt. The development of new energy vehicles in China drives the demand for cobalt significantly. From the data of the past five years, the overall demand for cobalt has maintained an average annual growth of 7.4%. Cobalt is mainly used in 3C batteries and power battery (ternary) anodes in lithium batteries. Driven by the continued growth in smart phone sales, the 3C battery segment still maintains a growth rate of around 10%. In terms of new energy vehicle power batteries, although the ternary power battery currently accounts for a relatively low proportion (27% of the power battery), as the passenger car's mileage requirements increase, the proportion of the ternary battery will also be Ascension, which has become one of the main growth points of cobalt demand.

New energy power battery cobalt ratio continues to increase

In 2015, the power battery shipments surged to 15.7Gwh, a three-fold increase over the same period last year. The power battery products are mainly divided into lithium iron phosphate and ternary batteries (lithium nickel cobalt manganese oxide), among which lithium iron phosphate batteries occupy a dominant position in the Chinese market, but they do not require cobalt metal. Although the proportion of ternary materials in the entire power battery is only 27%, as the demand for passenger cars increases, the proportion will also increase rapidly, which will lead to the growth of cobalt demand.

There are currently two major factors that constrain the development of ternary batteries, which affects their demand for cobalt. On the one hand, the domestic ban on ternary batteries for electric buses, on the other hand, the subsidy policy for new energy vehicles has not yet landed, affecting car sales. However, the ternary battery has a higher specific capacity and is the main development direction of the passenger car. Once the restriction policy is released, it will quickly pull the demand for cobalt. In addition, the new round of subsidy policy will further stimulate the sales of electric vehicles, which will also have a significant pulling effect on the demand for cobalt.

Judging from the expansion of domestic power battery capacity, there are a large number of enterprises in China that are expanding the production capacity of ternary batteries, including the lithium iron phosphate lead. BYD also has a 2GW capacity of nickel-cobalt-manganese hydride.

According to incomplete statistics, China's power battery capacity will reach 58GWh by the end of 2016; according to the calculation of ternary power battery produced by 20GWh, the current mainstream power battery is still 532model. It is difficult to quickly popularize the 622 and 811 models in the short term, and its demand for tricobalt tetroxide. The amount reached 8600 tons, much higher than the demand of 1600 tons in 15 years, which is obvious.

List of cobalt concept stocks:

Huayou Cobalt: Cobalt product leader

As a leading domestic cobalt refining company, Huayou Cobalt Co., Ltd. not only has a large capacity for refining cobalt, but also actively deploys overseas mineral resources. In 2015, the company's various cobalt products sold more than 23,000 tons, ranking first in the domestic industry.

Layout of overseas resources and increase of mineral resources reserves: Huayou Cobalt has been developing cobalt and copper resources in Africa since 2003. As of 2015, the company has four mining rights in the Congo to meet the self-sufficiency of some cobalt mines. The company is actively promoting the issuance of new shares and completing the wholly-owned acquisition of PE527 mining rights, so the company's reserves of cobalt resources will rise rapidly.

About PE527 Mine: The PE527 mine has a large amount of copper and cobalt ore with reserves of 363,700 tons and 54,100 tons respectively. The PE527 copper-cobalt mine is located about 26km from Lubumbashi, close to the junction of the National Park and the National Railway in Likasi and Lubumbashi, with 380 volts of electricity passing through the mine. The mine is located 2,900 km from Durban Port in South Africa and 2,360 km from Dares Salaam, Tanzania. The transportation is convenient.

Cobalt salt capacity is released, and resources are self-sufficient to improve profitability: After the new capacity is released, the company's annual production of cobalt salt will reach 15,000 tons. In addition, the company's continuous acquisition of mineral resources overseas will greatly enhance the self-sufficiency of cobalt mines and improve the company's profitability.

Luoyang Molybdenum Industry: Global cobalt mine leader super merger and acquisition of cobalt mine giant

On May 9, 16th, the company signed an agreement with the US Freeport Group to acquire a 56% interest in the Congo Tenke Fungurume copper-cobalt mine owned by the Freeport Group for US$2.65 billion. The transaction is expected to be completed in the fourth quarter of 2016. The Tenke copper-cobalt mine is the Congo's largest copper-cobalt mine, and the acquisition has made the company the world's top copper and cobalt producer.

Freeport: Tenke is a world-class copper-cobalt mine located in the Congo, located in a mineral-rich Central African copper belt. In 2015, Tenke produced 204,000 tons of copper metal and produced 16,000 tons of cobalt metal (according to 100%). In addition, it has a proven and controlled level of resources containing 13.1 million tons of copper metal and 1.3 million tons of cobalt-containing metals. The inferred level resource contains 11.6 million tons of copper metal and 1.3 million tons of cobalt-containing metal (according to 100%). This means that there is huge potential for development.

GEM: The recycling of domestically-recycled cobalt materials is based on recycling and increasing domestic cobalt supply:

The company recycles high-tech cobalt materials by recycling cobalt resources and used batteries. The domestic market share of ultra-fine cobalt powder is over 50%. Over the years, the company's nickel-cobalt powder business has maintained a business share of more than 50%. . The company's ultra-fine cobalt nickel powder and other products have a production capacity of 10,000 tons / year, of which, the ultra-fine cobalt powder has an annual output of 1,500 tons / year, high-purity cobalt carbonate 3,000 tons / year, high-purity cobalt oxalate 3,000 tons / year, annual recycling More than 2,000 tons of cobalt resources are used, accounting for more than 50% of China's strategic cobalt resource supply. In 2015, the company's cobalt-nickel recycling business and battery materials further increased significantly, with sales exceeding 22,000 tons. The company currently produces 5,000 tons of nickel-cobalt-manganese ternary materials per year, and has started construction of three cobalt-containing battery materials with an annual output of more than 5,000 tons, which will become a new kinetic energy for the company's performance growth.

The production level of cobalt powder ranks first in the world: at present, the cobalt products of various specifications such as spherical cobalt powder and ultrafine cobalt powder produced by the company, meet the demand of the domestic customers widely, especially the kind of spherical cobalt powder to replace imported products, become the domestic kind of spherical cobalt powder core suppliers, makes China's cobalt powder manufacturing level into the international advanced level.

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