Global tussle with lithium resources, Chinese companies will complete the layout of the "salt lake + mine"

On May 17th, Chinese LiYe giant sky LiYe (002466) to spend 25.9 billion Yuan to buy a 24% stakes in Chile LiYe giant SQM company. After completion of the transaction, sky LiYe lithium resources abroad will form the layout of the "salt lake and mine", further enhance its position in the global LiYe market.

In recent years, with the rapid development of new energy automobile market, the global demand for upstream material lithium. China lithium resources are abundant, but the restriction of the production process, the technology content is higher, The battery Lithium carbonate, high purity lithium carbonate etc. Still need a large number of imported from abroad. Who master the lithium resources, who mastered the lifeblood of this round of new energy vehicles development. So, like the day his LiYe the lithium resources of China's enterprises overseas layout are not in a minority.

Morning post group according to the domestic cross-border mergers and acquisitions investment information services m&a research statistics, in 2017 alone, Chinese enterprises in overseas layout project nearly 20 lithium resources, acquisition way is divided into acquisition of equity and two kinds of the off-take agreement, give priority to with the former. Including 15 disclosure sum, involving in 3.748 billion Yuan.

At present, the global lithium resources mainly by which companies control and the layout of the Chinese enterprises in overseas lithium resources "situation"?Generalize the surging news for this.

"Four three ore" of global lithium resources supplies distribution

The U.S. geological survey (USGS), according to data from the 2016 global lithium ore reserves of about 14 million tons. Chile reserves for 7.5 million tons, accounting for 51.8% of the world's total reserves. In addition, China (3.2 million tons, 22.1%), Argentina (2 million tons, 13.8%), Australia (1.6 million tons, 11.1%) also relatively rich countries such as reserves.

World class lithium resources mainly concentrated on the South America and Australia. Large salt lake including Uyuni Bolivia flats Uyuni, Chilean Atacama of Salt Lake City, Argentina salt lake Olaroz, Hombre Muerto, etc. Main lithium fai quarries including Australia taliesin (Talison) its RIM Greenbush mines and Australia Mt Marion lithium.

Global lithium resources supply highly focused on the "four three mine". Citic securities research reports shows that in 2016, the global output of lithium or lithium carbonate equivalent of 184000 tons, including Talison, SQM, the United States yabao (propagated), the United States FMC and Australian Orocobre five companies production accounted for 91%, industry concentration degree is high, the resource monopoly pattern is obvious.

China's two important lithium LiYe giants have been abroad layout

As China's two LiYe giants, sky LiYe had layout lithium resources abroad.

At present, the sky LiYe holds a 51% stake in the taliesin have at present are mining reserves in the world's largest and best quality lithium fai quarries - western Australia Green bushes (green bush mine).Terry's owner is currently the world's largest solid lithium concentrate and suppliers, has more than 25 years. As of September 30, 2016, President bush green lithium total resources of 165 million tons, 8.33 million tons of lithium carbonate or equivalent; Lithium reserves totaled 86.4 million tons, 5 million tons of lithium carbonate or equivalent.

Sky LiYe after the completion of the acquisition of SQM will have SQM company about 26% of the company, became the company's second-largest shareholder. Its controlling taliesin company at the same time, the next step will continue to expand to build the second large chemical production facilities and new ore grade lithium concentrate hard ground facilities, implementation lithium concentrates production capacity increased to 1.34 million tons/year goals.

Thus, sky LiYe in LiYe markets around the world will have more to say.

Domestic another LiYe giant jiangxi feng LiYe (002460), the layout of the lithium resources in overseas is not weakness.

According to jiangxi feng LiYe results, it is the world's third largest and China's largest producer of lithium compounds and the world's largest producer of lithium metal. Calculated on the production capacity of 2017, its lithium carbonates production ranked fourth in the world, accounting for 10% of the global capacity; Lithium metal capacity global ranking first, accounting for 47% of the global capacity.

Jiangxi feng LiYe has located in Australia, Argentina, China, and Ireland, six quality lithium resources of the company.

Specific view, jiangxi feng LiYe owns 43.1%, Australia's RIM, RIM is expected to Mt. Marion lithium fai quarries new production line, after 2018, 200000 tons of lithium concentrate production capacity will reach 400000 tons/year. Mount Marion for jiangxi feng LiYe lithium currently the main source of raw materials.

In the first half of 2017, jiangxi feng LiYe also bought a Canadian American LiYe 17.5% equity and 4.84% stake in the Pilbara, Australia also holds Argentine Mariana ore 80% stake and Ireland Avalonia lithium brine fai ore 55% stake.

Jiangxi feng LiYe 2017 results show that, at present, only the Mount Marion has gone into operation and several other ore is still in development.

In fact, the overseas layout of lithium resources not only these two LiYe giants. Including jiangte motor (002176), as a representative of metallic lithium production suppliers, try to through the layout of the overseas lithium resources, combined with lithium stock has the layout of the home, for Lithium electricity Product raw material supply capacity to provide security, through economies of scale to reduce raw material procurement costs and improve profitability; With the lion (002684 SZ), mingge era of science and technology, such as Great Wall (601633)Power battery And the vehicle and parts enterprises, through mergers and acquisitions overseas lithium to achieve the layout of the upstream and downstream industry chain. At the same time, represented by jinshajiang, song stone investment capital investment institutions to the lithium resources abroad is also very interested.

2017, Tibet Everest (600338) 1.365 billion Yuan of mergers and acquisitions, a Canadian firm LithiumX Energy Corp. Jiangte motors $104 million merger Australia listed mining companies Tawana 11.45% equity; Huayou cobalt industry mergers and acquisitions (603799) 68.42 million Yuan AVZ company 11.2% stake in Australia; Resources (002738) $50.781 million acquisition of middlings was PSC company 11.14% stake in Australia; Baowei holdings (00024. HK) $99.31 million acquisition of Australian mining company AMAL15.56 % issued share capital; Qingdao dry luck high-tech new materials co., LTD. 85.69 million Yuan of mergers and acquisitions Australia argonaut mining 19.9%;The lion technology $15 million merger Canada lithium mineral exploration company Metalstech; Great Wall 146 million Yuan m&a Australia Pilbara Minerals company less than 3.5% equity; Song stone investment of 276 million Yuan of mergers and acquisitions bars n 19.89% stake in mining.

In March 2018, minge era offered c $50 million for * ST gene (600432) indirect holding companies in North America, Canada LiYe for capital increase, the other $16 million Canadian subscribes North America LiYe convertible bonds. At present, minge era has indirect LiYe a controlling stake in North America.

Previously, jinsha river Capital (GSR Capital) is also interested in SQM of the shares. According to Reuters, when jinsha river capital or buy SQM about 20% of the company, according to the market price of just under $1.9 billion.

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