The 800 billion giant suddenly spread big news and negotiated the purchase of 6 African lithium mines?

How big is the impact?

April sales data soared threefold

  Chen Ming

  On May 31, some media reported that BYD is negotiating to purchase 6 African lithium mines, which can meet its battery needs for more than ten years.

  Affected by the epidemic and price increases, the sales of electric vehicles of some domestic car companies declined in April, but BYD's sales remained high.

According to the production and sales report, BYD sold 106,000 new energy vehicles in April, a month-on-month increase of 1.11% and a year-on-year increase of 313%. The cumulative sales from January to April was 392,400, a year-on-year increase of 387.94%.

  In the secondary market, since May 10, BYD's stock price has risen by 27%, and the latest market value is 797.4 billion yuan, nearly 800 billion yuan.

  It is reported that BYD negotiated the purchase of 6 African lithium mines, which can meet the demand for batteries in the next ten years

  The leading domestic new energy vehicle enterprise - BYD has another big move!

  According to surging news reports, BYD has found six lithium mines in Africa, and all of them have reached acquisition intentions.

According to the source, according to BYD's internal calculations, among the six lithium mines, the amount of ore with a grade of 2.5% lithium oxide has reached more than 25 million tons, which can be converted into 1 million tons of lithium carbonate.

The above-mentioned source also revealed, "In terms of cost, the loading price of lithium carbonate per ton is definitely below 200,000 yuan."

  According to the research report of Soochow Securities, the average usage of lithium carbonate per Gwh (1 million kWh) of lithium iron phosphate batteries and ternary lithium batteries is about 600 tons.

Based on the current mainstream pure electric vehicle battery capacity of 60 degrees, the lithium carbonate required for a pure electric vehicle is about 36kg.

In other words, if the 25 million tons of ore are fully mined, it can meet the power battery needs of 27.78 million 60-degree pure electric vehicles.

If the hybrid vehicles with a battery capacity of more than ten degrees are included, the 25 million tons of ore will at least double the production capacity.

  BYD's sales target for 2022 is 1.5 million vehicles. If calculated based on this, the lithium ore it has won will meet its battery needs for more than ten years.

  In fact, in recent years, BYD has been deploying upstream lithium resources.

As early as 2010, BYD took a stake in Zabuye Salt Lake, the largest salt lake lithium mine in China.

In mid-May this year, Salt Lake disclosed the progress of BYD's 30,000-ton battery-grade lithium carbonate project in Salt Lake, saying that BYD is currently in the pilot test of lithium extraction technology at the Salt Lake Pilot Base.

  In March of this year, Shengxin Lithium Energy, an upstream raw material supplier, a lithium salt processing company, announced that it plans to introduce BYD as a strategic investor through targeted issuance of shares.

The two parties will carry out long-term cooperation in the field of lithium products, and agree to cooperate in upstream mineral resources, jointly find high-quality mineral resources for cooperative development, obtain lithium-related resources, drive in-depth cooperation in upstream and downstream business and technology of the industrial chain, and ensure supply stability. and cost advantages.

  The sales data is dazzling, and institutions are optimistic about BYD's future profit improvement

  Affected by the epidemic and price increases, the sales of electric vehicles of some domestic car companies fell sharply in April.

According to data from the China Passenger Transport Association, retail sales of new energy in April fell by 36.5% month-on-month, and wholesale sales fell by 38.5% month-on-month.

However, BYD's sales in April remained high. The production and sales report showed that BYD sold 106,000 new energy vehicles in April, a month-on-month increase of 1.11% and a year-on-year increase of 313%. The cumulative sales from January to April was 392,400, a year-on-year increase of 387.94%.

  Some brokerage research institutions believe that BYD's sales remain high, on the one hand, it shows that the company's products are more competitive, and on the other hand, it also benefits from the company's relatively complete industrial chain layout.

  In April, the BYD Han family sold 13,421 units, including 10,225 units of the Han EV series and 3,196 units of the Han DM series. As of April 2022, the cumulative sales volume of the BYD Han family has exceeded 200,000 units, becoming the first vehicle to achieve the "sales A Chinese brand sedan with a price of 200,000+ and a sales volume of 200,000+.

  On May 20, BYD Seal was officially released and pre-sale started. The model is positioned as a medium-sized pure electric sports sedan. After the release on May 20, the number of pre-sale orders reached 22,637 units as of 22:00 that night. It is expected that steady-state monthly sales are expected to exceed 2 10,000 vehicles.

In addition, D9, the first model of the company's Denza brand after the equity reorganization, was released and pre-sold. This model is positioned as a high-end medium and large MPV. After the release on May 16, as of 15:00 on the 23rd, the pre-sale orders reached 13,680.

Guohai Securities believes that the two new models precisely meet the market demand, which will speed up the progress of the company's high-end brand, and will play a good role in promoting the company's future profitability.

  Galaxy Securities pointed out that BYD has formed a whole industry chain layout in the new energy vehicle industry, from battery raw materials to new energy vehicle three-electric system to power battery recycling, forming a complete closed loop, and the synergy effect of the industry chain is remarkable.

In the field of upstream raw materials, the company has mastered battery raw materials from the source, and has Qinghai Salt Lake lithium resources and Tibet Salt Lake lithium resources; in the field of midstream components, the company can independently develop and manufacture core components for new energy vehicles such as batteries, motors, and electronic controls; in the downstream In the field of complete vehicles, the company has a complete vehicle manufacturing and research and development system, and the sales volume of new energy vehicles ranks first among domestic independent brands, and has a prominent leading position.

The company's mid-to-high-end product matrix has been completed, and the scale effect brought about by the increased product sales has gradually emerged. The loss of new energy vehicles has basically been reversed. The company's profitability is expected to continue to improve, and performance improvement can be expected.

  The lithium battery industry maintains rapid growth, and the quotations of some lithium battery materials are lowered

  On May 11, data released by the China Automotive Power Battery Industry Innovation Alliance showed that CATL ranked first in April with 5.08GWh of power batteries, accounting for 38.28%; BYD ranked second with 4.27GWh of installed vehicles, accounting for 38.28% of the total. Compared with 32.18%, the gap with the Ningde era has narrowed.

  According to the Ministry of Industry and Information Technology Department of Electronic Information, from March to April 2022, my country's lithium-ion battery industry will continue to maintain rapid growth. According to industry specifications announced by enterprise information and research institutions, the total national lithium battery output will exceed 95GWh from March to April.

  In the battery sector, the output of energy storage batteries exceeded 10.5GWh, and the installed capacity of power batteries was 34.6GWh.

Export trade continued to grow. From March to April, the national lithium battery export totaled 42.3 billion yuan.

  In the first-order material segment, the output of related products increased by more than 45% year-on-year. From March to April, the output of cathode materials, anode materials, diaphragms, and electrolytes reached 240,000 tons, 190,000 tons, 1.8 billion square meters, and 110,000 tons, respectively.

  In the second-order material segment, the output of lithium carbonate and lithium hydroxide from March to April reached 51,000 tons and 35,000 tons respectively. The average prices of battery-grade lithium carbonate and lithium hydroxide were 492,000 yuan/ton and 478,000 yuan/ton, respectively. Overall continued to run high.

  It is worth noting that the price of upstream raw materials for lithium batteries has recently declined, which has eased the cost pressure of mid-stream and downstream.

According to data released by the Shanghai Steel Federation, on May 31, the quotations of some lithium battery materials were lowered again, with cobalt tetroxide falling by 5,000 yuan/ton; cobalt oxide by 5,000 yuan/ton; cobalt carbonate by 2,500 yuan/ton.

  In addition, according to the price monitoring of the business society, the price of lithium carbonate will continue to decline in May 2022. On May 30, the average price of industrial grade lithium carbonate in East China was 451,000 yuan / ton, which was the same as the beginning of the month (May 1, the average price of industrial carbon in East China). The average price was 464,000 yuan / ton, down 2.8% from the price.

In addition, according to the data of the big list of the business society, as of May 30, the average price of domestic industrial-grade lithium hydroxide enterprises was 463,300 yuan / ton, a decrease of 1.42% compared with the price on May 1.

  Lithium carbonate analysts of the business agency believe that the current market inquiries have increased significantly, and the ore auction information on May 24 has further supported the price from the emotional side.

The superimposed terminal demand has gradually recovered, and the market just needs to purchase and reserve an increase. It is expected that the short-term lithium carbonate price will remain high and fluctuated.

(Broker China)