China in expansion competition for battery material in Africa… Price stability change such as Cobalt
Park Jung Il | comja77@ | 2018-02-08 11:14:29
Demand for lithium-ion rechargeable batteries has increased with the proliferation of electric vehicles and African countries such as China and the Democratic Republic of Congo are moving to increase their battery material production. As a result, the price of lithium-related materials, such as lithium-ion batteries, is on the rise, and battery makers are likely to be less costly.
According to the industry on February 7, African nations such as China and Congo, which are major battery material producing countries, are investing to expand battery material production facilities such as lithium and cobalt.
According to Chinese media reports, China`s state-owned Qinghai Yuanhu Group and BYD, an electric-battery and battery manufacturer, have begun construction of a lithium carbonate plant in Chongqing, China`s largest scale, with an annual production capacity of 50,000 tons.
Meanwhile, the total investment is CNY 8 billion (about KRW 1.3 trillion), and the construction period is about one and a half years. In the Qinghai province, only 17.24 million tons of confirmed lithium reserves are found. This is 83% of China`s total reserves.
Large investments are under way in Africa. Congo, which is estimated to account for about 40 % of world cobalt production, plans to increase its production by more than double to next year, with annual production of a total of 58,000 tons. Namibia, Niger and C？e d`Ivoire are also competing with major resource companies in the world for securing lithium production.
The rise in battery material prices has slowed somewhat as the competition for material expansion continues. According to the Korea Mineral Resources Corporation, the price of lithium, the main material for battery cathode materials, soared from USD 113 per kilogram last February to USD 155 in November of the same year. However, as of the last two days this year, it is showing a decline to USD 144.5.
The Cobalt sales rose steeply from USD 38,800 a tonne earlier this year, surpassing the USD 80,000 mark earlier this year, but turned to flat at USD 81,000 on February 6. Nickel prices also jumped to USD 13,890 per ton on January 29, down to USD 13,370 on February 6.
According to a person in charge of domestic battery manufacturing company, "Lithium is different depending on the product, but it accounts for about 10% of the rechargeable battery cost," he said. "As the competition for capacity expansion increases, said.
Also, domestic battery makers are working to reduce material costs by introducing raw material price-fixing systems with car makers or by making equity investments in resource businesses.
By Park Jung Il comja77@
[ copyright ⓒ The Digitaltimes ]
According to the industry on February 7, African nations such as China and Congo, which are major battery material producing countries, are investing to expand battery material production facilities such as lithium and cobalt.
According to Chinese media reports, China`s state-owned Qinghai Yuanhu Group and BYD, an electric-battery and battery manufacturer, have begun construction of a lithium carbonate plant in Chongqing, China`s largest scale, with an annual production capacity of 50,000 tons.
Meanwhile, the total investment is CNY 8 billion (about KRW 1.3 trillion), and the construction period is about one and a half years. In the Qinghai province, only 17.24 million tons of confirmed lithium reserves are found. This is 83% of China`s total reserves.
Large investments are under way in Africa. Congo, which is estimated to account for about 40 % of world cobalt production, plans to increase its production by more than double to next year, with annual production of a total of 58,000 tons. Namibia, Niger and C？e d`Ivoire are also competing with major resource companies in the world for securing lithium production.
The rise in battery material prices has slowed somewhat as the competition for material expansion continues. According to the Korea Mineral Resources Corporation, the price of lithium, the main material for battery cathode materials, soared from USD 113 per kilogram last February to USD 155 in November of the same year. However, as of the last two days this year, it is showing a decline to USD 144.5.
The Cobalt sales rose steeply from USD 38,800 a tonne earlier this year, surpassing the USD 80,000 mark earlier this year, but turned to flat at USD 81,000 on February 6. Nickel prices also jumped to USD 13,890 per ton on January 29, down to USD 13,370 on February 6.
According to a person in charge of domestic battery manufacturing company, "Lithium is different depending on the product, but it accounts for about 10% of the rechargeable battery cost," he said. "As the competition for capacity expansion increases, said.
Also, domestic battery makers are working to reduce material costs by introducing raw material price-fixing systems with car makers or by making equity investments in resource businesses.
By Park Jung Il comja77@