Rongbai Technology expects to put more than 100,000 tons of battery cathode materials into production this year

On January 19, Rongbai Technology (688005) said in an interactive exchange with investors that the company was listed on the Science and Technology Innovation Board in July 2019. It is mainly engaged in the research and development, production and sales of lithium battery cathode materials and their precursors. The main products include NCM523, NCM622, NCM811, NCA series of ternary cathode materials and their precursors. The primary competitive element for Rongbai Technology to dominate the lithium battery industry is the innovation capability of technology and products. In terms of high-nickel product development, high-nickel production line expansion, and engineering design, it has card position and technical advantages. In terms of product development, currently NCM-Ni83 single/poly crystal and NCA-Ni88 have been mass-produced, NCM-Ni90 single/poly crystal has been developed, and NCM-Ni96 single/poly crystal and NCA with Ni>90 are under development; In terms of engineering design, the company insists on building its own core equipment and production lines. After continuous iteration of engineering construction capabilities, the current unit ton investment is more than 40% less than that of its peers, and the construction period is more than 50% less than that of its peers. After the high-nickel technology matures, the scale effect appears. , The yield rate has increased, and it is expected that in 2030, compared with LFP materials, it will have a comprehensive cost advantage (cost per watt-hour and usage cost). Regarding the technical reserves of solid-state batteries, Rongbai Technology’s solid-state battery positive electrode system will be based on high-nickel ternary, which will not make a fundamental change to the high-nickel material system. The company's main products are 8 series and above high nickel cathode materials, Ni90 and above polycrystalline and single crystal series ultra-high nickel products launched in the first half of 2020, which can be used for solid-liquid batteries. Rongbai Technology’s 2020 semi-annual report has disclosed ongoing research projects including all-solid-state battery cathode materials, focusing on overcoming the problems of the coating material and coating amount of the cathode material. After the research and development is completed, the prepared high-nickel ternary cathode material suitable for solid-state batteries will have the capacity for mass production. At present, the company maintains Ru0026D cooperation with major domestic solid-state battery manufacturers, and continues to supply Ni90 and above ultra-high nickel products to some manufacturers. In addition, in response to the trend of cobalt removal, Rongbai Technology stated that medium and low nickel materials will be limited to the exploitation of cobalt resources in the future. According to the current amount of cobalt used in ternary materials for medium and low nickel power batteries, global cobalt demand will reach 200,000 tons in 2025, and global cobalt supply is expected to fall short of demand. High nickel and low cobalt is the development trend of power batteries. Rongbai Technology further explained that through technological progress, the NCM811 battery has achieved systematic improvements in terms of materials, cell structure, battery thermal management, and system thermal diffusion. High nickel and low cobalt materials are no longer the shortcomings of battery safety. Rongbai Technology also revealed that the company will speed up the construction of cathode production capacity this year, and it is expected to put into production in 2021 to reach more than 100,000 tons, including the 20,000 tons of high nickel cathode production and construction project in South Korea that has been initiated. According to the research report of Orient Securities, by the end of 2019, Rongbai Technology's ternary cathode material production capacity reached 40,000 tons, of which the high nickel production capacity reached more than 80%, and the precursor production capacity was 15,000 tons. Hubei Rongbai Phase IV high-nickel ternary cathode capacity totaling 21,600 tons has been fully put into production, and currently the fifth phase of 7,200 tons capacity is under construction. Guizhou Rongbai (Zunyi) Phase I project has reached full production capacity of 15,000 high nickel cathodes. The remaining 15,000 tons capacity of the first phase project is still under construction. The total annual output of 100,000 tons will be achieved after the completion of the second and third phases. Cathode production capacity. In addition, the Hubei 2025 power-type lithium battery material comprehensive base project is under construction of the precursor with an annual output of 60,000 tons, and will reach full production in the third year after it is put into operation. The overall goal of the project is an annual output of 100,000 tons of cathodes, 200,000 tons of precursors and 100,000 tons of resource regeneration. It is divided into three phases of construction and is expected to be completed by the end of 2025. In addition, Rongbai Technology is also actively deploying overseas Korean production capacity. A wholly-owned subsidiary Co., Ltd. is responsible for the construction of 70,000 tons/year high nickel cathodes. Currently, it is actively preparing for the first phase of 20,000 tons of production capacity. The project is also expected to be completed in 2025. At the same time, the production capacity of precursors has also been deployed in Chungju (EMT), South Korea. On the basis of the existing production capacity of 6,000 tons, it will be expanded by 6,000 tons. Orient Securities stated that Rongbai Technology's production capacity will continue to be released in the next five years. It is estimated that by 2025, the company will have 172,000 tons of ternary cathode production capacity (high nickel production capacity will account for more than 95%) and 149,000 tons of precursor production capacity. . Therefore, in the future, the company will purchase some precursor raw materials as a supplement. In the short term, the price of raw materials will rise, and the cost of raw materials for cathode materials will increase slightly. After the release of precursor production capacity, the company's raw material cost advantage will be reflected. The company signed a 29,300 tons of ternary precursor strategic procurement agreement with GEM in March 2019, including 9,300 tons in 2019 and 10,000 tons in 2020 and 2021 to meet the short-term demand for external purchase of precursors. Outsourced precursors are mainly concentrated On the two models of NCM523 and NCM622. It is estimated that in 2025, the company's self-made precursor can basically meet the needs of cathode material preparation.