In 2017, the annual cumulative production and sales of new energy vehicles were 794,000 and 777,000, respectively, with year-on-year growth of 53.8% and 53.3%, respectively. 2018 January-August, the cumulative sales of new energy vehicles were 601,000, with a cumulative year-on-year growth of 88.0%, and it is expected that for the whole year of 2018, the sales of new energy vehicles will break through 1 million units for the first time.
In 2009, China officially launched the 10 cities and 1,000 vehicles project to promote new energy vehicles, and from 2009 to 2012*** promoted 17,000 new energy vehicles. 2013, new energy vehicles have entered the stage of large-scale popularization and application, and as of June 2018, the cumulative production has reached 2.2 million, accounting for nearly 50% of the world's total production, and China has become the world's top new energy vehicle producer and seller. China has become the world's largest new energy vehicle production and sales country.
China's new energy vehicles are mainly pure electric, so the scrapping of power batteries after expiration has become a concern for the government.
On July 25, 2018, the Ministry of Industry and Information Technology and other seven departments to carry out new energy vehicles power battery recycling pilot work, this matter is of great significance to the lithium battery recycling industry, the power battery recycling pilot work, will promote the market to accelerate the improvement of power battery recycling system.
With the new energy automobile sales flourish, power lithium demand open high growth space. According to data estimation, it is expected that China's power lithium demand in 2016-2020 will be 28.21GWh, 36.44GWh, 47.48GWh, 69.82GWh and 100.94GWh, with a year-on-year growth rate of 29.17%, 30.30%, 47.05% and 44.57% respectively in 2017-2020.
This part of the battery is expected to have a service life of 5-7 years, and is planned to enter the decommissioning period between 2018-2025 one after another. Therefore, the power lithium battery recycling market peaked for the first time in 2018, and will maintain high growth in the next three years.
The resulting battery recycling market size will reach about 6.5 billion yuan in 2020, of which the market size of the gradient utilization market is about 4.1 billion, and the recycling market size is 2.4 billion yuan. By 2023, the combined market size will reach 15 billion yuan, of which the market size of the gradient utilization will be about 5.7 billion yuan, and the recycling market size will be about 9.3 billion yuan.
In 2018, relevant industry predators have often, beach layout lithium battery recycling industry, including vehicle manufacturers, power battery manufacturers, battery material manufacturers, etc..
1, the evening of March 23, 2018, Shengtun Mining (600711) announced that the company intends to issue shares in a non-public manner, at a price of 1.2 billion yuan to buy 100% of the equity of Zhuhai Kelixin Metal Materials Co. at a purchase price of 13 times the PE;
2, on March 14, 2018, the news, Jilin Jien Nickel Industry announced that its wholly-owned grandson Company Ji'en International Investment Limited intends to transfer its 36.59 million shares of North America lithium industry to the wholly-owned grandson of Ningde Times (300750), Canada Times;
3, in December 2017, Tianqi shares (002009) announced that, with its own funds of 100 million yuan to participate in the capital contribution, through the special merger and acquisition fund to acquire Jiangxi Longnan Jintaige cobalt industry 98% equity, forming an industrial closed loop of lithium battery recycling.
4, August 31, 2017, Nachuan shares (300198) released an announcement that the holding of Quanzhou Qiyuan Nachuan new energy industry partnership to 1.864 billion yuan price to acquire the Star Heng power supply (the first in China to achieve the second life of the power lithium batteries and laddering utilization) 61.59% of the equity;
5, August 30, 2017, Guoxuan Gaoke (002074) released an announcement that announced and Lanzhou Jinchuan respectively invested 50 million yuan in Anhui, Gansu to establish two power battery resource recycling technology company, construction of power battery recycling production line;
6, August 29, 2017, cold sharp cobalt industry (300618) released an announcement that invested 100 million yuan to set up wholly-owned subsidiary of Ganzhou Cold Rui new energy technology Ltd, construction of lithium battery waste recycling and wet smelting production line project;
7, August 10, 2017, Xiamen Tungsten (600549) announced that it intends to Ganzhou Haopeng (the company specializes in secondary battery renewable resources recycling and processing and utilization) to increase its capital by 78,848,700 yuan. After the capital increase, the company will hold 47% equity in Ganzhou Haopeng, becoming its largest shareholder;
8, August 2, 2017, Grimme (002340) announced that it would use its own funds of 900 million yuan to increase the capital of its wholly owned subsidiary, Jingmen Grimme New Material Co. to further the power battery recycling and raw material recycling business;
9, November 7, 2017 On November 7, 2017, Nandu Power (300068) announced that it intends to use its own funds of 100 million yuan to set up a wholly owned subsidiary of Anhui Nandu Huaplatinum New Material Technology Co. to carry out lithium battery recycling and new material business;
10, April 5, 2017, Huayou Cobalt (603799) announced that it intends to use its subordinate company, Huayou International Holdings, to acquire 70% of the shares of South Korea's TMC Company (a renewable metal raw material processing enterprise) 70% of the equity, the equity transaction price is about RMB 121 million.
According to statistics, the M&A cases of lithium battery grew from 17 in 2013 to 53 in 2016. The amount of mergers and acquisitions grew from 1.758 billion to 28.6 billion in 2016.
In 2017, there were 35 listed companies involved in lithium battery M&A projects, of which 34 had a total transaction value of more than 46.5 billion yuan, and the M&A amount of more than 1 billion companies reached 15.
As of June 30, 2018, there were 36 financing M&A cases involving listed companies in the field of lithium batteries, equipment and upstream materials***, involving an amount of 43.525 billion yuan.
The system of lithium battery recycling is currently in the process of being established, the policy is not yet completely clear, the recycling channels are being built, and the recycling technology does not yet have a unified standard. With the power battery into the centralized end-of-life period, as well as new energy vehicle sales continue to surge, power battery recycling will usher in the development of the golden period.
Personally, I am very optimistic about the lithium battery recycling industry, the future of this industry will likely give birth to several listed companies.
The above is a personal view of the lithium battery recycling industry, I hope to help you.