Lithium carbonate prices rise, new energy vehicles may rise in price

The chemical formula of lithium carbonate is Li2CO3, with a molecular weight of 73.89. It is an inorganic compound, colorless monoclinic crystal, soluble in dilute acid and water, but insoluble in ethanol and acetone, and does not deliquesce in the air. Its thermal stability is the same as that of carbons of the same family. The acid content is relatively low.

Lithium carbonate is widely used in industry, medicine, food, military and national defense and other fields. It is used medically to treat manic psychosis, sedatives, etc. Lithium carbonate is a raw material for making ceramics, enamel, glass, and metallic lithium. It can also be used in synthetic rubber, dyes, catalysts, semiconductors, etc. Battery-grade lithium carbonate can be used to prepare lithium-ion battery cathode materials such as lithium cobalt oxide, lithium iron phosphate, lithium manganate, and ternary materials. High-purity lithium carbonate can also be used in optical special glass, magnetic materials industries, supercapacitors, medicine, etc. industry.

According to the “Battery Grade Lithium Carbonate Industry In-depth Market Research and Investment Analysis Report 2022” released by the Industrial Research Center, the uses of lithium carbonate Widely, as the demand from industries such as consumer electronics and new energy vehicles continues to grow, my country’s demand for lithium carbonate will grow accordingly. In 2020, my country’s lithium carbonate production was approximately 171,000 tons. In 2021, the explosive growth of new energy vehicles has caused a surge in demand for lithium carbonate. Lithium carbonate production has increased to approximately 231,000 tons. The supply is still in short supply, and lithium carbonate production will continue to grow.

Profits from upstream salt mining, processing and sales of lithium carbonate have increased. Affected by the situation in Russia and Ukraine, from the end of 2021 to March 2022, the price of lithium carbonate increased from 50,000/ton to 500,000/ton. From the perspective of the industrial chain, midstream and upstream companies are highly profitable. Based on the CIF price of lithium concentrate of 23,000/ton, 8 tons of concentrate can produce 1.0 tons of lithium carbonate, and the cost of lithium carbonate is about 184,000/ton. The net profit of lithium has increased. Based on the sales price of 500,000/ton in the lithium carbonate market at the end of March 2022, minus intermediate costs, the profit of lithium salt processing plants can reach about 50%. Leading lithium mining companies such as Ganfeng Lithium, China Mining Resources, Tianqi Lithium, etc. can achieve a net profit of more than 56% from the sales of lithium carbonate.

The midstream of lithium carbonate is affected by price increases, with costs rising and profit margins falling, which affects the downstream. Lithium battery manufacturers are affected by end market demand and continue to expand production. However, the price of upstream lithium carbonate rises, causing corporate procurement costs to increase by about 21%. -27%, profit margins have been squeezed, affecting downstream companies.

The lithium iron phosphate batteries used by leading downstream new energy vehicle companies such as Tesla are made from lithium carbonate. Affected by the rising price of lithium carbonate, Tesla has already raised the prices of its model 3 and Y models at the end of 2021. On March 10, Tesla officially stated that the prices of its domestic model 3 and Y models would increase again. The model 3 and Y models are priced at a price of no more than 200,000/ton of lithium carbonate. Under the condition that the price of lithium carbonate in 2022 is about 500,000/ton, it is expected that the sales price of new energy vehicles will continue to increase in the future.

Industry analysts said that due to the impact of the situation in Russia and Ukraine, the epidemic and other factors, domestic imports of lithium carbonate have decreased, while new energy The demand for automobiles continues to rise. It is expected that domestic lithium carbonate prices will continue to rise. The lithium carbonate industry will continue to maintain prosperity in the future. While prices continue to increase, sales volume will also continue to increase. The profit margins of lithium carbonate production companies will increase, which will promote the overall lithium carbonate industry in the future. The market size continues to expand.