Multiple lithium battery companies have expected good performance in 2022, with lithium salt prices continuing to decline and the profitability of middle and downstream battery manufacturers repairing

Recently, due to the continuous decline in lithium salt prices, multiple lithium battery companies have disclosed their performance forecasts for 2022. In 2022, the performance of lithium-ion battery companies generally improved, and the profitability of middle and downstream power plant companies was gradually restored.
On January 3rd, Long Term Lithium Technology, a lithium battery company, released a performance forecast for 2022, stating that it is expected to achieve a net profit attributable to the parent company of 1.4-1.6 billion yuan in 2022, a year-on-year increase of 99.82% -128.36%. On the same day, Pava Holdings released a performance forecast for 2022, stating that it is expected to achieve a net profit attributable to the parent company of 145 million to 160 million yuan in 2022, a year-on-year increase of 73.83% to 91.81%. For the reasons for the significant increase in performance, many lithium battery companies have expressed that they have benefited from the rapid development of new energy vehicles both domestically and internationally, with strong demand in the downstream market and a thriving production and sales of their products.
IPG China Chief Economist Bai Wenxi also stated in an interview with reporters from China Times: The significant performance forecast of lithium battery manufacturers in 2022 is related to the explosion of the new energy power battery and energy storage battery market. The decrease in upstream raw material prices of lithium batteries has led to a decrease in the cost of lithium battery manufacturing, and the gross profit margin of battery manufacturers has expanded. Compared to the increase in revenue without profit in the first half of this year, the profitability of battery manufacturers has been largely repaired
Expected Performance of Multiple Lithium Battery Enterprises in 2022
On January 3rd, Long Term Lithium released its 2022 performance forecast. Long term Lithium Technology stated that the company expects to achieve a net profit attributable to shareholders of the listed company of 1.4 billion to 1.6 billion yuan for the entire year 2022, an increase of 699 million to 899 million yuan compared to the same period last year (legally disclosed data), and a year-on-year increase of 99.82% to 128.36%. It is reported that Long Term Lithium achieved a net profit attributable to the parent company of 1.114 billion yuan in the third quarter of this year, which also means that Long Term Lithium achieved a net profit of approximately 286-486 million yuan in the fourth quarter of this year.
For the reason for the significant increase in performance, Changchang Lithium explained that this was due to the rapid growth in demand for new models and new technology products from downstream customers during the reporting period, resulting in a thriving production and sales of the company's products; Meanwhile, during the reporting period, with the production of some new production lines and the use of new technologies and equipment, the production efficiency of the company's production lines was greatly improved, production costs were reduced, and under the expansion of production capacity, the cost control ability was further improved, resulting in a significant increase in net profit.
On January 3rd, Pava Holdings also released its 2022 performance forecast. According to Parva Corporation, it is expected to achieve a net profit attributable to the listed company of 145 million to 160 million yuan in the first three quarters of 2022, an increase of 61.5847 million yuan to 76.5847 million yuan compared to the same period last year, a year-on-year increase of 73.83% to 91.81%.
Regarding this, Parva Group also stated that during the reporting period, it benefited from the significant increase in demand from downstream battery companies, driving the validation of the high prosperity of the industry, and the company's sales and profits increased significantly year-on-year. With the rapid growth of the company's single crystal NCM7 series high-voltage products, production capacity has been rapidly released, and the company continues to improve profitability through production line upgrades, technological innovation, supply chain optimization, and other means.

In addition, Shangtai Technology and Xiongtao Co., Ltd. have also recently disclosed their company performance forecasts for 2022. Shangtai Technology is expected to achieve a net profit attributable to the parent company of 1.418 to 2.474 billion yuan in 2022, a year-on-year increase of 160.91% to 171.22%. Xiongtao Co., Ltd. also turned losses into profits in 2022, achieving a net profit attributable to the parent company of 150-225 million yuan, and a net profit after deduction of 100-150 million yuan, a year-on-year increase of 119.04% to 128.56%. The construction of the sodium ion battery pilot line of Xiongtao Group is also being orderly promoted, and it is planned to be put into operation this year and the first phase of mass production line construction will be launched.
Lithium salt prices continue to decline at the beginning of the new year
After the New Year's Day and at the beginning of the New Year, the price of lithium salts continues to decline. Currently, the price of lithium carbonate in China has dropped from a high of 600000 yuan/ton to around 500000 yuan/ton. According to data from Shanghai Steel Union, on January 4th, the prices of some lithium battery materials continued to decline. The prices of battery grade lithium carbonate decreased by 6000 yuan/ton, with an average price of 511500 yuan/ton. The prices of industrial grade lithium carbonate decreased by 6000 yuan/ton, with an average price of 511500 yuan/ton. And this has been a continuous 38 day decline in domestic lithium carbonate prices, which have been declining since November 24th last year.
Looking at the longer term, the price of lithium carbonate has risen from 280000 yuan/ton at the beginning of 2022 to 523500 yuan/ton at the end of March last year. Afterwards, its price began to decline and has remained around 450000 yuan/ton. After entering September, the price of lithium carbonate began to strengthen again and broke through the 600000 yuan/ton mark in early November. After more than a month of continuous correction, the current price of lithium carbonate remains around 500000 yuan/ton.
Regarding the correction of lithium carbonate prices, Huaxi Securities Research Report believes that due to factors such as the off-season of consumption, the overall purchasing enthusiasm of downstream manufacturers is not high, and lithium salt prices continue to decline. However, this fluctuation in lithium salt prices is a normal fluctuation accompanied by the off-season of the industry, and is not a "turning point". Against the background of delayed production time of multiple upstream projects and slow release of lithium resource supply, lithium salt prices are expected to remain high for a long period of time.
Guojin Securities Research Report also stated that since November last year, there has been a phenomenon of production reduction and order cutting in the middle reaches of the lithium battery industry chain. Starting from the second quarter of this year, the battery end has been priced according to the "M-3" floating price. Due to the significant fluctuations in lithium carbonate prices, battery factories have no intention of increasing inventory in the fourth quarter of this year, but have a strong willingness to reduce inventory, increasing the seasonal fluctuations of this year.
The continuous decline in lithium carbonate prices is related to the rapid increase in supply and intensified market competition caused by the rapid increase in lithium carbonate production capacity. However, lithium battery production capacity will increase with the increase in downstream demand. It is currently difficult to see that its production capacity is already surplus, and it is difficult to say that the turning point of lithium carbonate prices has arrived
Qi Haishen, President of Beijing Teyi Sunshine New Energy, believes in an interview with a reporter from China Times that in the past two years, there has been a slight adjustment in the lithium carbonate market price after experiencing rapid increases. With strong downstream demand and product supply exceeding demand, the price is also reaching new highs. However, the price of lithium carbonate has

文章转自：华夏时报

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