The first batch of power battery 'scrap tide' is approaching, capital has entered the game ahead of schedule

While the new energy vehicle industry chain has attracted a lot of attention, the first batch of electric vehicles have run more than 200,000 kilometers. From the perspective of battery life, since 2018, the first batch of domestic automotive power batteries to enter the market will soon be 'scrapped.' tide'. From a national perspective, since December last year, relevant state departments have successively issued the 'Procedure for Implementation of Extended Producer Responsibility System' and 'Specifications for Recycling and Dismantling of Vehicle Power Batteries' to provide a standardized path for the recycling of used batteries. With policy-based warm air protection, capital will naturally follow the wind. On March 10, the battery manufacturer Camel (601311, SH) announced that it is expected to invest a total of 5 billion yuan to build a power battery cascade utilization and regeneration industrial park, and the goal is to form an annual recycling and processing capacity of about 300,000 tons of used power batteries and corresponding The production capacity of cathode materials. According to the analysis of the Lithium Battery Research Institute (GGII), the recycling market will be a tens of billions of scale industries in the future. Listed companies gather together. In fact, as a leading company in lead-acid batteries, Camel has always been interested in the field of lithium batteries. Since 2008, it has carried out technology research and development and other work, but the lithium battery business has not achieved good performance. The 2017 semi-annual report showed that Camel also mentioned that 'the production capacity of lithium batteries has not yet been fully released' in the reasons for the decline in non-net profit. Today, Camel has invested 5 billion yuan in the construction of power battery cascade utilization projects. Obviously, it has not given up the lithium battery business and clearly stated that it must 'completely open up the power battery industry cycle and maximize the value of recycling.' The staff of the Securities Department of Camel Co., Ltd. told reporters that the company's subsequent recycling business will rely on lead-acid battery after-sales and recycling outlets in 29 provinces across the country, and cooperate with major OEMs, so that power battery recycling channels can be guaranteed. The 'Daily Business News' reporter noted that since 2017, a number of listed companies have intensively deployed the power battery recycling market, and gradually formed three types of operating entities: including BYD (002594, SZ), Ningde Times and other vehicles represented by the company. And battery manufacturers, battery material suppliers represented by Huayou Cobalt (603799, SH) and Xiamen Tungsten (600549, SH), as well as GEM (002340, SZ) and Tianqi (002009, SZ) as representatives Third-party recycling agency. 'The market has just started, and a large number of batteries must be eliminated before recycling is involved.' Mo Ke, chief analyst of True Lithium Research, told the 'Daily Business News' reporter that the real development of the new energy vehicle market was in 2015. In 2010, large-area power batteries should be eliminated in 2019 or 2020, so companies are now beginning to deploy and seize power battery recycling channels. According to the data of the Advanced Industrial Research Institute of Lithium Battery Research (GGII), in 2018, the scrap recycling of power batteries will reach 63,900 tons, a year-on-year increase of 129.99%; by 2020, the recycling volume will reach 247,600 tons, and the recycling market will be tens of billions in the future. industry. In order to create a closed loop of the industrial chain, power battery recycling methods are divided into two types: echelon utilization and resource recycling, among which echelon utilization is the ideal method. However, the reporter of the 'Daily Economic News' found that most of the power battery recycling business deployed by listed companies is resource recycling, that is, dismantling of cobalt, manganese and other metal materials for reuse, and less engaged in echelon utilization, which is the same as that of nearly two. In recent years, the upstream raw materials of power batteries have risen not unrelated. According to GGII data, the output value of China’s four key materials for power batteries (positive and negative materials, separators, and electrolytes) in 2017 was 61 billion yuan, a year-on-year increase of 62%. Among them, the output value of cathode materials increased the most, mainly due to the increase in electrolytic cobalt in 2017 Over 100%, the price of lithium carbonate has risen by more than 30%, causing the price of cathode materials to rise sharply. While the prices of upstream raw materials continue to rise, the prices of power batteries continue to decline due to subsidies and other factors. The power battery company Guoxuan Hi-Tech (002074, SZ) stated in the 2017 performance report that due to the adjustment of the new energy vehicle subsidy policy, the domestic power battery prices generally fell in 2017, while the upstream raw material prices rose, which affected the overall profitability. Attributable net profit decreased by 10.73% year-on-year. In order to ensure a stable source of raw materials, reduce costs, and achieve a closed-loop industrial chain, many listed companies have gradually reduced the amount of external materials purchased by intervening in the power battery recycling business. For example, in August 2017, Xiamen Tungsten increased the capital and shares of Ganzhou Highpower, a power battery recycling company, and became its largest shareholder. Xiamen Tungsten Industry said that this capital increase will help the company quickly expand and strengthen the secondary resource recovery industry, and at the same time guarantee the company's battery material development for cobalt and nickel metal demand. In January 2018, Tianqi shares transferred 98% of the equity of Jintaige Cobalt through its fund, and said that this investment is focused on its industry position in the recycling, processing and resource utilization of waste lithium-ion batteries. In addition, Merck also believes that from the perspective of economic benefits, the dismantling of power battery echelon utilization is seriously uneconomical and requires the government to introduce policies and subsidies. Now the real economic benefits are the recycling of cathode materials.