The global lithium resource industry has high concentration and the resource monopoly pattern is obvious

Pure electric vehicles are increasingly becoming one of the options for many people to travel, and the emergence of pure electric vehicle companies is overwhelming. This has led to the inevitable: the demand for raw materials for lithium-ion batteries for pure electric vehicles will soar.

In addition, although China's lithium resources are also abundant, the current mining volume is not large enough, and battery-grade lithium carbonate, Gaochun, and other lithium carbonate need to be imported from abroad. In this context, many Chinese companies face the global distribution of related raw materials control, set off a global lithium resources battle.

The most recent case is Tianqi Lithium, a Chinese lithium giant, which acquired about 24 % of the SQM held by Nutrien in May 2018 for $65 per share(worth about $4.07 billion). SQM, called Sociedad QuimicayMineradchile, is a Chilean chemical company that is the world's largest producer of lithium and also supplies fertilizers, iodine, lithium, and various industrial chemicals.

Before that, another domestic lithium giant, Gan Feng, had already opened the layout of global lithium resources. It is reported that the Lithium industry is the third largest producer of lithium compounds in the world and the largest producer of lithium compounds in China. It is also the world's largest producer of lithium metals. The Lithium industry currently owns stakes in six high-quality lithium resources in Australia, Argentina, China, and Ireland. Li Feng has a 43.1 % stake in RIM of Australia. In the first half of 2017, Li Feng also acquired a 17.5 % stake in Lithium America of Canada and a 4.84 % stake in Pilbara of Australia. It also holds 80 % of the Mariana brine mine in Argentina and 55 % of the Avalonia Lithium mine in Ireland.

In fact, in the year 2017 alone, Chinese companies have laid out nearly 20 lithium mineral resources projects overseas. There are two types of acquisitions, namely the acquisition of shares and the signing of off-take agreements. Including: Tibet Everest acquired Canadian company LithiumXEnergy Corp for 1.365 billion yuan; Jiangte acquired 11.45 % of Tawana, an Australian listed mining company, for 104 million yuan; Huayu Cobalt acquired 11.2 % of the Australian AVZ company for 68.42 million yuan; CNR acquired 11.14 % of the Australian PSC company for 50.781 million yuan; Baowei Holdings acquired RMB 99.31 million of the issued share capital of AMAL 15.56 % of the Australian mining company; Qingdao Qianyun Gaoke New Materials Co., Ltd. acquired 19.9 % of Agosa Mining in Australia for 85.69 million yuan; Lions Technology acquired Metaltech, a lithium exploration company in Canada, for 15 million yuan; Great Wall Motors acquired a stake of no more than 3.5 % in Australia's Pilbara Minerals for 146 million yuan; Geshi invested 276 million yuan to acquire 19.89 % of Baqianuo's equity.

Another case is that in March 2018, CATL acquired North American LithiumInc. through its subsidiary Canada. )'s controlling interest. The Ningde era is a battery leader that has emerged in China in recent years. It is a star company that produces lithium-ion batteries. It maintains long-term strategic cooperation with domestic leading car companies such as Yutong, SAIC, BAIC, Geely, Fuqi, Hunan China Motors, Dongfeng and Chang 'an. It has also entered the supply chain system of international first-class vehicle companies such as BMW and Volkswagen and has become the only domestic power battery manufacturer that has gone abroad and can directly compete with international battery giants such as Panasonic, Samsung, and LG.

Even with so many layouts, the Chinese electric car industry still needs to be strengthened in the safety of lithium resources. Whether it is lithium reserves or mining volume, to meet the rapid development of the pure electric vehicle industry, it needs to make greater efforts.

World-class lithium resources are mainly concentrated in South America and Australia. Large salt lakes include Uyuni in Uyuni, Bolivia, the Atacama in Chile, Olaroz in the Salt Lake in Argentina, and HombreMuerto. Major lithium-pyroxene mines include the Greenbush mine, owned by Talison, Australia, and the MtMarion lithium mine, owned by RIM, Australia.

The global supply of lithium resources is highly concentrated in the "four lakes and three mines." According to CITIC Securities 'research report, in 2016, global lithium ore production was equivalent to 184,000 tons of lithium carbonate equivalent, of which Talison, SQM, ALB, FMC, and Orocobre, Australia, accounted for 91 % of the output. The industry concentration is high and the resource monopoly pattern is obvious.

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