Actively promote 100,000 tons of electrolyte and 150,000 tons of lithium battery materials projects

A few days ago, Tinci Materials stated in an investigation by investor institutions that due to the relatively strong demand for downstream and terminal new energy vehicles, the company's electrolyte product sales increased in the third quarter, and shipments in the first three quarters increased by more than 30% year-on-year. With the continuous improvement of market demand, the company is also actively expanding production, including investing in the construction of an electrolyte project with an annual output of 100,000 tons (Fuding) and an annual output of 150,000 tons of lithium battery materials, which can meet the market in the next 3-5 years. need. Regarding whether the new electrolyte additive lithium bistrifluoromethanesulfonimide (LiFSI) can maintain a relatively high price in the future, Tianci Materials believes that there is little room for the price of LIFSI to fall in the near future. In the future, as the demand for LIFSI and the scale of production gradually Increase, the scale effect will begin to highlight, the cost of LIFSI may drop, and its selling price will change accordingly. Tianci Materials also mentioned that the price of solvents has recently risen due to price fluctuations in upstream bulk products, and the price of the company's electrolyte products has also been adjusted accordingly. It is understood that Tinci Materials acquired its competitor Dongguan Kaixin in 2014, and then became the largest electrolyte manufacturer in China by shipments. In the domestic electrolyte market in 2019, Tianci Materials accounted for 22%, Xinzhoubang accounted for 18%, and Shanshan shares accounted for 15%. In the first quarter of 2020, the market share of Tianci Materials increased to 31%, Xinzhoubang accounted for 19%, and Jiangsu Cathay Pacific accounted for 16%. In November this year, Tinci Materials announced a notice that Jiujiang Tinci, a wholly-owned subsidiary of the company, has signed an agreement with Tesla to supply lithium-ion battery electrolyte products to Tesla. The agreement stipulates the products during the business cooperation period. Pricing models, supply methods, product standards, etc. From the current point of view, Tesla is very determined to plan its own battery production, and it is expected to start mass shipments in 2022. By then, Tesla's battery output is expected to be around 10GWh, corresponding to 20,000 tons of electrolyte demand. The industry expects that the initial supply will be basically provided by Tinci Materials alone, and the corresponding electrolyte will be close to 20,000 tons in 2021. In the later stage, Tinci's share is expected to be more than 50%. However, Tianci Materials stated that the above agreement does not impose mandatory restrictions on Tesla's purchase volume, and the final sales amount must be settled on the purchase order issued by Tesla. In order to further enhance market competitiveness and meet customer needs, CIMA announced this year that the company will invest in the construction of an electrolyte project with an annual output of 100,000 tons, with a total investment of RMB 289,453,300. Tianci Materials stated that the implementation of this project is based on the company's production reserves based on customers' future needs for electrolyte. After the completion of the project, it will effectively solve the problem of insufficient production of the company's future supporting customers. At present, the pattern of my country's electrolyte industry is characterized by the concentration of leading companies and numerous small and medium-sized companies. From the perspective of market concentration, the market concentration of TOP6 in the domestic electrolyte industry in 2018 exceeded 70%. The top companies in terms of shipment volume are Tianci Materials, Xinzhoubang, Jiangsu Guotai, Shanshan, Tianjin Jinniu, and Jinguang Gaoke etc. By 2019, according to Chuancai Securities' statistics, the domestic electrolyte TOP6 market share has reached 77%. Relevant data show that as of the end of 2019, the total output of domestic TOP10 electrolyte manufacturers totaled 312,000 tons. my country’s electrolyte shipments have risen rapidly from 43,000 tons in 2014 to 183,000 tons in 2019, with a compound increase rate of more than 30%. Tianfeng Securities predicts that the global electrolyte demand in 2020 and 2025 will be 362,000 tons and 11.71 million tons, respectively, and the corresponding market space will reach 13.6 billion yuan and 36.9 billion yuan.