On the evening of September 13, CATL issued an announcement that the company intends to invest no more than RMB 13.5 billion to invest in the construction of a new lithium battery manufacturing base (Yichun) project in Yichun City, Jiangxi Province, and at the same time, invest 1.350 billion yuan to jointly invest in the establishment of "Suzhou Times Xinan Energy Technology Co., Ltd." (tentative name), with Shanghai Shida Investment Management Co., Ltd. ("Shanghai Shida"), Suzhou Xinyue Zhonghe Business Consulting Center (Limited Partnership) (hereinafter referred to as "Suzhou Xinyue") and Jiang Yong. The actual industrial and commercial registration shall prevail, referred to as the "joint venture"), with a registered capital of 2.5 billion yuan, and CATL holds 54% of the shares.
Wind data shows that as of the close of trading on September 13, CATL closed at 502.8 yuan / share, up 0.14%, with a total market value of 1171 billion yuan.
Image source: Wind
13.5 billion yuan to build a lithium battery production and manufacturing base
According to the announcement, CATL intends to invest no more than RMB 13.5 billion to invest in the construction of a new lithium battery manufacturing base (Yichun) project in Yichun City, Jiangxi Province. The planned land area of the project is about 1300 mu, and the construction period is expected to be no more than 30 months from the start of construction.
CATL said that the company's investment in the construction of production bases is in line with the company's strategic development plan, which will further improve the company's production capacity layout to meet the company's future business development and market expansion needs, which is of great significance to promoting the company's long-term and stable development. The investment and construction of this project will increase the company's capital expenditure and cash expenditure, but it will have a positive impact on the company's business layout and operating performance in the long run.
On July 30, CATL signed a strategic cooperation framework agreement with the People's Government of Jiangxi Province and the People's Government of Yichun Municipality, and the new lithium battery manufacturing base project of CATL is planned to settle in Yichun. According to the agreement, CATL will build a new lithium battery production and manufacturing base and a corresponding upstream material production base such as lithium carbonate in Yichun. It is reported that Yichun, known as the "lithium capital of Asia", has the world's largest lithium mica mine, and has proven usable lithium oxide reserves of about 2.5 million tons.
On September 10, the data released by Shanghai Iron and Steel Federation showed that the price of some products in the lithium battery industry chain continued to rise, metal lithium rose by 20,000 yuan / ton in a single day, lithium carbonate rose by 3,000 yuan / ton in a single day, lithium hydroxide rose by 2,000-2,500 yuan / ton in a single day, ternary materials rose by 2500-5000 yuan / ton in a single day, and electrolytic cobalt rose by 800-1000 yuan / ton in a single day.
Industry insiders said that catheter chose to settle in Yichun, mainly due to the abundant local lithium mica mineral resources, investment in Yichun can achieve the convenience of upstream lithium resources, reduce production and transportation costs. At the same time, it will further strengthen the industrial layout of "copper, cobalt, lithium and nickel resources - lithium carbonate / lithium hydroxide - cathode materials (including precursors) - recycling cycle" in the field of cathode materials in the Ningde era.
1.35 billion yuan power electric vehicle drive control system
In addition to building a lithium battery production and manufacturing base, CATL also develops electric vehicle drive control systems.
According to the announcement, the business scope of Suzhou Times Xinan Energy Technology Co., Ltd., which CATL intends to participate in, mainly includes: emerging energy technology research and development, new energy prime mover equipment manufacturing, energy recovery system research and development, new energy vehicle electrical accessories sales, charging pile sales, centralized fast charging stations, battery manufacturing, etc.
In terms of equity structure, CATL holds 54% of the shares, suzhou Xinyue, Shanghai Shida and Jiang Yong hold 36%, 10% and 0.05% of the shares respectively. Among them, Jiang Yong is the general manager of the joint venture company.
The announcement said that the company's participation in the joint investment matters can use the technology and research and development capabilities of the joint investors Suzhou Xinyue and Jiang Yong in the electric vehicle drive control system, as well as the investment layout of Shanghai Shida in the new energy vehicle industry chain, to provide industrial chain resource support for the joint venture company, grasp the development trend of the power battery system, and enhance the competitiveness of power battery products.
Orient Securities pointed out that new energy vehicles opened up golden 20 years, and the drive motor market space is expected to exceed 200 billion yuan. As one of the core three electric systems of new energy vehicles, the motor accounts for 5-10% of the value of the whole vehicle, and is one of the most core components of the new energy vehicle industry chain. Under the rapid growth of new energy vehicles, the demand for drive motors is rapidly released, and the double motor is superimposed, and the total global demand for motors is expected to be close to 82 million units in 2030, with a market size of about 200 billion yuan.
Accelerate the layout of the industrial chain
According to the semi-annual report, as of the first half of this year, the total amount of funds raised by CATL reached 24.97 billion yuan, and the investment in the first half of the year was 4.828 billion yuan, and the cumulative investment reached 18.752 billion yuan. Due to the increase in cash expenditure on production capacity investment and construction, as of the end of the reporting period, the net cash flow generated by investment activities was 25.127 billion yuan, an increase of 893.99% over the same period of the previous year.
According to the statistics of high-tech lithium battery, CATL has planned 8 self-built production bases, with a total battery production capacity (including PACK) of about 500GWh, and the production capacity of joint ventures with car companies will reach 600-650GWh.
On the evening of August 12, CATL disclosed a huge fixed increase plan of 58.2 billion yuan, which was mainly used to expand production capacity. According to the fixed increase plan, the fixed increase is expected to increase the annual production capacity of 77GWh lithium-ion batteries, as well as the annual production capacity of about 30GWh energy storage cabinets.
At the same time, CATL will also invest 7 billion yuan in the research and development and application of new energy advanced technology projects to promote the research and development and industrial application of advanced technologies such as key materials in the sodium-ion battery industry chain.
Gaogong lithium battery said that the global new energy vehicle market maintained rapid growth, and the head energy storage lithium battery enterprises in the first half of the year were in a state of full orders and serious lack of production capacity. According to the data, in the first half of the year, China's new energy vehicle sales reached 1.206 million units, an increase of 201.5% year-on-year, and the penetration rate increased to more than 10%; the sales of new energy vehicles in the European market reached 1.01 million units, an increase of 154% year-on-year; and the sales of new energy vehicles in the US market were 275,000 units, an increase of 116% year-on-year.
According to data from Gaogong Lithium Battery (GGII), from January to June 2021, global energy storage lithium-ion battery shipments reached 18.2GWh, an increase of 80.2% over 10.1GWh in January-June 2020. Among them, domestic energy storage lithium-ion battery shipments were 11.1GWh, an increase of 101.8% over 5.5GWh in the same period last year.
Bloomberg predicts that by 2040, global sales of new energy passenger cars will reach 56 million units, and the global energy storage market is expected to reach 1095GWh.
CITIC Securities said that in 2021, the global electric vehicle acceleration and the demand for electrification supply chain will erupt, and domestic electrification supply chain enterprises, especially the head enterprises in all links, will accelerate overseas and fully enjoy the global electrification dividend.
Editor: Li Ruoyu Wang Zhuying
