1. International alliances are emerging in the lithium battery materials field.
1.1 BASF and Shanshan Group establish a joint venture to serve the Chinese battery materials market.
On May 20, BASF and Shanshan Co., Ltd. reached an agreement to jointly establish a joint venture in China, with BASF holding a controlling stake, to produce cathode active materials (CAM) and cathode material precursors (PCAM). BASF will hold 51% of the shares, and Shanshan Co., Ltd. will hold 49%. The transaction is expected to be officially completed by the end of this summer after obtaining relevant approvals.
Foundation for Cooperation: BASF will provide technical and R&D support, a global operational footprint, and a raw material supply system jointly built with strategic partners. Through continuous capacity expansion, BASF aims to increase its global annual production capacity to 160,000 tons by the end of 2022. Shanshan Co., Ltd., as a lithium-ion battery material supplier for the electric transportation and consumer electronics markets, has a product portfolio covering all major systems of lithium-ion battery cathode materials and corresponding precursor products, forming an industrial chain layout of "raw materials—ternary precursors—cathode materials—battery recycling." It operates four cathode active material and cathode material precursor production bases in Hunan and Ningxia, achieving an annual production capacity of approximately 90,000 tons in 2022.
Collaboration Analysis: This powerful alliance will enable both parties to complement each other in R&D innovation and product portfolio, integrate supply chain and customer resources, further enhance the competitiveness of the proposed joint venture, and promote the further development of China's cathode material market.
1.2 POSCO Chemicals plans to collaborate with National Technology in the field of lithium-ion battery anode materials.
On May 31, National Technology announced that, given POSCO CHEMICAL Co., Ltd.'s ("POSCO Chemical") positive outlook on the new energy industry, it is actively expanding its anode material business; Shenzhen Snow Industrial Development Co., Ltd. ("Snow") possesses a complete industrial chain production capability in the anode material field, from raw material pretreatment to anode processing and manufacturing, and has core technologies and production advantages. POSCO Chemical intends to cooperate with National Technology in the field of lithium-ion battery anode materials.
The announcement indicates that POSCO Chemicals plans to cooperate with the company in the field of lithium-ion battery anode materials by acquiring a portion of the equity held by National Technology in Snow or its subsidiaries, or by establishing a joint venture.
2. LG continues its procurement/supply activities in the new energy sector.
On June 8, LG Energy announced that it had acquired a 7.5% stake in Australian chemical company Queensland Pacific Metals (QPM) for 12 billion won (approximately US$10.8 million) in order to provide the company with a stable supply of key metals for batteries.
On May 21, it was announced that LG Chem will supply Tesla with nickel-cobalt-manganese-aluminum (NCMA) quaternary battery cathode materials in July. This marks LG Chem's first commercial production of NCMA cathode materials, which contain 90% nickel and will be used in the cylindrical batteries supplied by LG New Energy for Tesla's Model Y. Furthermore, following its supply to Tesla, LG Chem also plans to supply NCMA cathode materials to GM's Hammer battery in September.
3. Many battery material companies are actively expanding production.
In Europe, BASF, Umicore, and Johnson Matthey are all accelerating their plans to expand their cathode material production in Europe, and may become the main cathode material suppliers for European power battery companies in the future.
BASF and Umicore have signed a non-exclusive cross-licensing agreement for patents. The agreement covers cathode active materials and cathode precursor products, including nickel-cobalt-manganese (NCM), nickel-cobalt-aluminum (NCA), nickel-cobalt-manganese-aluminum (NCMA), and high-capacity manganese-rich materials (HE-NCM). Johnson Matthey has partnered with a Finnish mining group to build a cathode material plant in Finland for the mass production of its nickel-rich eLNO cathode material, with a planned annual capacity of 30,000 tons.
Domestically, on June 8, Ganfeng Lithium signed an Investment Contract and a Supplementary Investment Contract with the Fengcheng Municipal Government, planning to invest in a 50,000-ton-per-year lithium battery new energy materials project in Fengcheng, Jiangxi Province. The project will be constructed in two phases. The first phase will construct a 25,000-ton-per-year lithium hydroxide project, including the construction and production-related infrastructure, plant, auxiliary facilities, employee dormitories, and safety production equipment.
On June 7, it was announced that Xiangfenghua plans to invest in a 60,000-ton-per-year lithium battery anode material project in Suining, mainly producing high-end artificial graphite anode materials. The planned investment is approximately RMB 1.2 billion, and the project will be constructed in two phases. The first phase plans to invest RMB 600 million, and the second phase plans to invest RMB 600 million. The construction period for the first phase is approximately 20 months, and the second phase project will be completed and put into operation within 16 months after obtaining the construction permit approval.
4. Several lithium battery material manufacturers entered the "production phase" in 2021.
In April 2021, it was reported that several companies, including SVOLT Energy, SKI, LG Chem, and Jiangsu Guotai, began to put lithium battery materials into production. Projects of companies such as Shanshan Co., Ltd. and Jiayuan Technology were also expected to enter the trial production stage around the second quarter.
