Corrects headline, shipment details in fourth paragraph
German chemicals giant BASF and major Chinese producer of lithium battery materials Ningbo Shanshan on 31 August established joint venture BASF Shanshan Battery Materials to focus on the fast-growing electric vehicle industry.
Ningbo Shanshan in May unveiled an agreement with BASF to transfer a 19.6438pc stake of its subsidiary Shanshan Energy to BASF, and also to purchase 31.3562pc of Shanshan Energy from other shareholders. BASF will hold 51pc of Shanshan Energy, while Ningbo Shanshan will reduce its share to 49pc from 68.6438pc after the deal. The deal was completed yesterday, with Shanshan Energy renamed BASF Shanshan Battery Materials.
Shanshan Energy operated Ningbo Shanshan's battery cathode material business. Established in 2003, Shanshan Energy focuses on production of lithium-ion cathode materials including lithium nickel cobalt manganese oxide (NCM), lithium cobalt oxide (LCO) and lithium manganate.
Shanshan Energy shipped 16,722t of LCO, NCM and lithium manganate in January-June, up by 85pc on the year.
BASF Shanshan's production facilities are located in central China's Hunan province and northwest China's Ningxia Hui autonomous region, with combined capacity of 60,000 t/yr for cathode materials. It is on track to expand capacity to 90,000 t/yr in 2022.
Prices for lithium salts, main feedstocks of NCM and LCO, have remained on an upward trajectory, driven by tight lithium concentrate supplies and robust demand from the electric vehicle (EV) and energy storage industries. Most market participants are bullish about the short-term market and do not expect the tight supply situation to ease soon.
The range for 99.5pc grade carbonate edged higher to 115,000-122,000 yuan/t ($17,800-18,900/t) ex-works yesterday from Yn110,000-115,000/t ex-works on 26 August as supplies remained short, while demand from the EV and energy storage sectors remained buoyant. Import prices moved up to $14-14.50/kg cif China yesterday from $13.50-14/kg cif a week earlier as most overseas suppliers had signed long-term contracts with downstream consumers, leaving limited supplies for spot buyers.
Prices for 56.5pc grade hydroxide rose from Yn117,000-122,000/t ex-works on 26 August to Yn125,000-132,000/t ex-works on 31 August. Lithium resources are globally abundant, but current exploitation capacity is insufficient to meet rapid growth in demand from the EV sector, with many participants expecting prices to rise further to Yn140,000/t ex-works in the short term. Argus assessed export prices higher at $17.50-18/kg fob China yesterday, up by $0.70/kg from a week earlier, on tight supplies and robust demand in the export market.
The range for 60pc grade lithium cobalt oxide was assessed steady at Yn305-315/kg ex-works on 31 August, with producers reluctant to lower offer prices further in light of rising lithium carbonate feedstock costs, despite continued inactive demand.
