The recent Global Power Battery Summit has made battery recycling popular. On July 22, 10 concept stocks hit their daily limit. As the number of electric vehicles increases, the supporting services will also have a scale effect. For example, charging piles will show explosive growth in 2022. According to the Ministry of Industry and Information Technology, the number of new charging and swapping piles in the first half of the year increased by 3.8 times year-on-year. Power battery recycling will also see high growth, with a compound growth rate of 42 from 2021 to 2025, and a market size of 50 billion yuan.
Resource recycling is called urban mining. Power battery recycling is still in the early stages of industry development and belongs to the blue ocean market. The participating companies have grown rapidly in the past two years. The number of registered power battery recycling companies will reach 24,503 in 2021. In 2020, there were only 3,400. While growing rapidly, they also faced competition for resources. According to the business model of power battery recycling, industry qualifications, recycling technology and recycling channels are the keys to the development of power battery recycling enterprises. According to the maturity of the business model, the first echelon includes CATL, Ganfeng Lithium, GEM, Xiamen Tungsten, etc., which have technology and channel advantages; the second echelon includes Tianqi Technology, Guanghua Technology, etc., such companies are expanding production Actively, recycling channels are also actively expanding; the third type of companies are companies that have recently entered the industry through equity participation or newly entered the industry, such as Beyond Technology, Wangneng Environment, Dishengli, etc.
GEM (002340) is mainly engaged in the recycling of lithium battery ternary precursor materials and resources. In terms of power battery recycling, the company has signed vehicle power battery recycling and processing agreements with 340 car companies and battery companies and launched Through cooperation, the company has completed the layout of five major recycling bases. Currently, the company has more than 200 recycling outlets, making it the absolute leader in power battery recycling in the industry. Battery recycling volume has also increased by leaps and bounds. From 2019 to 2021, the recycling volume increased from 1,000 tons to 8,400 tons. It is expected that the recycling volume in 2022 will double year-on-year.
Xiamen Tungsten Industry (600549) has three major business segments, battery materials, tungsten and molybdenum, and rare earths. The company is one of the second batch of companies to qualify for the "Industry Specification Conditions for Comprehensive Utilization of Waste Power Batteries for New Energy Vehicles", and the company's holding company, Ganzhou Haopeng Technology Co., Ltd., is one of the first five companies selected. Ganzhou Haopeng was established in 2010 In 2018, the main shareholders were Xiamen Tungsten Industry, Shenzhen Highpower Technology, and Beijing New Energy Vehicles controlled by BAIC Blue Valley. From the perspective of shareholder composition, Ganzhou Highpower gathered upstream, midstream, and downstream manufacturers of the lithium battery industry chain. Xiamen Tungsten Industry Lithium battery cathode materials, Shenzhen Haopeng produces and operates lithium-ion batteries, and BAIC Blue Valley is an electric vehicle manufacturer. Xiamen Tungsten Industry's waste battery (nickel metal hydride and lithium-ion battery) recycling and ammonium metatungstate production projects are advancing. In terms of recycling volume, the company stated that the battery recycling volume in 2020 was approximately 4,300 tons, and it was in a profitable state. In the company's 2021 annual report, There is no more data on battery recycling, power battery recycling, Xiamen Tungsten Industry’s motivation for establishing battery recycling is to ensure the upstream resources of lithium battery materials, and the value of the company’s investment lies in three other points.
(1) The company has outstanding technological and resource advantages in the tungsten industry. The company masters the world's most advanced tungsten and tungsten carbide powder technology. It also has the advantage of resource endowment, with tungsten resource reserves of nearly 2 million tons. Accounting for about 30% of the world's total, the production capacity of tungsten smelting products reaches 22,000 tons/year, ranking first in the world. The company's tungsten and molybdenum segment has built a complete industrial chain. The biggest highlight is that the company's photovoltaic tungsten wire is expected to be a beneficiary of the photovoltaic technology revolution. The price of silicon materials is high, and "large-size wafers" have become the main development direction of the silicon wafer link. Tungsten gold diamond wire is thinner than carbon steel diamond wire. When cutting silicon wafers, the silicon material is lost less. The value of the extra silicon wafers produced is greater than the price difference between tungsten wire and traditional bus bars. Tungsten wire has great potential and is in the early stage of industrialization. By the end of 2022, the production capacity of tungsten wire for photovoltaics is expected to rapidly increase to 24.5 billion meters/year, and will grow to 84.5 billion meters/year in 2023. Photovoltaic tungsten wire is expected to provide new products to the company. increment.
(2) The company is one of the four major rare earth groups in China, with a complete rare earth industry chain, strong risk resistance, and high prosperity of rare earth permanent magnets. Against the background of the rapid development of new energy, the demand for rare earth permanent magnet materials is strong. Enterprises such as Jinli Permanent Magnet and Zhongke Sanhuan have reported high growth in their interim results. The company's rare earth field is also expanding production. It is expected that the production capacity of magnetic material blanks will increase by the end of 2022. to 12,000 tons/year. In addition, the company is also exploring high-end applications of rare earths and developing the rare earth target market. The company plans to build a 3,000-ton rare earth functional target and rare earth metal alloy production line project, which may become a new profit growth point.
(3) In terms of lithium battery materials, the company is positioning high-voltage materials. High-voltage ternary materials have cost-effective advantages and sales are growing. The 2022 performance report shows that the company’s lithium battery material revenue is 8.5 billion yuan, a year-on-year increase 127.52, a month-on-month increase of 41, and the net profit margin was 371 million yuan, a year-on-year increase of 139, a month-on-month increase of 56.54. The company is accelerating the layout of production capacity of ternary materials and lithium iron phosphate materials. By 2023, the overall production capacity of cathode materials is expected to increase to 175,000 tons. As product scale effects emerge, profitability is expected to further improve.
Tianqi Co., Ltd. (002009) is mainly engaged in four major business sectors: intelligent equipment, lithium battery recycling, heavy industry equipment, and recycling industry. Power battery recycling is mainly carried out by its subsidiary Tianqi Jintaige Cobalt Industry. Tianqi Lithium Zhi Industrial further processes recycled materials. The 2021 annual report shows that the company's annual lithium carbonate production has increased from 1,150 tons to 2,000 tons. A technical transformation project will be launched in August 2021. After completion, the overall processing scale will increase from 20,000 tons per year. tons of waste lithium batteries have been increased to 50,000 tons per year. In April 2022, it announced plans to process 150,000 tons/year of waste lithium iron phosphate batteries. According to the 2021 annual report information, the company plans to increase investment in the next five years to use waste lithium battery raw materials Led by the company, it has formed a production project with an annual output of 30,000 tons of ternary precursors and 12,000 tons of battery-grade lithium carbonate.
What’s interesting about Tianqi Co., Ltd. is that in addition to its rapid production expansion plan, the company’s car dismantling business can form an agreement with the battery recycling business in the future. One of the sources of used power batteries is car dismantling; in addition, , in terms of recycling channels, the company has obviously accelerated its pace. Since 2022, the company has established strategic cooperation with financial leasing company Haitong Hengxin, Internet technology company JD Technology, battery factory Phylion Power, etc. to continuously build the company's waste power battery recycling system. The company's overall current market value is relatively small, and its lithium battery recycling business is growing rapidly, so there is room for a certain valuation increase.
Guanghua Technology (002741)’s main products include PCB chemicals, lithium battery materials, and chemical reagents. The company began to lay out the lithium battery recycling business in 2015. It is one of the first companies in my country to be selected into the "Industry Standards for Comprehensive Utilization of Waste Power Batteries in New Energy Vehicles". The company was selected earlier than Xiamen Tungsten Industry and Tianqi Co., Ltd. subsidiary Jintige. The company It has a first-mover advantage. In addition, its subsidiary Zhuhai Zhongli New Energy was also selected in the second batch. The company has patents related to lithium iron phosphate waste recycling, and has industry-leading lithium iron phosphate cathode material recycling technology. It has low energy and acid consumption, and its technical advantages have established its core competitiveness. In terms of production capacity, the company has carried out major expansion of production since 2021 and currently has a production capacity of 26,000 tons of cathode materials. There is still 10,000 tons of lithium iron phosphate recycling capacity expected to be put into operation in the second half of 2022, and another 100,000 tons of lithium iron phosphate recycling capacity is under preparation. In recent years, the company has signed cooperation framework agreements with bus manufacturers such as BAIC Group, Nanjing Jinlong, and Fujian Ouhui. In addition, the company's first energy-saving service station has been built in Beijing in 2021, further consolidating the source of retired power batteries.
Beyond Technology (301049) The company is mainly engaged in hazardous waste disposal services and electronic waste disposal. After listing, the company plans to expand horizontally into automobile dismantling and power battery recycling business. The company plans to invest 400 million yuan , forming a recycling and reuse capacity of 60,000 tons/year of used power batteries in Chuzhou City, Anhui Province. In addition, in September 2021, the company announced that it planned to invest 590 million yuan in the construction of a scrapped vehicle recycling, dismantling and comprehensive utilization project. The company's power battery recycling is still under planning. The company has experience in resource recycling. If car dismantling and battery recycling reach a certain scale in the future, the two major businesses can create synergy.
Wangneng Environment (002034) is one of the leaders in domestic solid waste in China. The company's waste incineration generates 5 billion kilowatt hours of electricity per year. The company's solid waste treatment can generate stable cash flow and provide funds for the company's business expansion. To ensure that, the company completed the acquisition of 60% equity of Zhejiang Lixin New Materials at the beginning of the year and entered the lithium battery recycling business; in June 2022, it signed a strategic cooperation agreement with Si Yongxing New Energy to cooperate in the fields of waste power battery recycling technology and recycling network. In terms of production capacity, the company has planned a lithium iron phosphate waste battery recycling production capacity of 60,000 tons/year.
Dishengli (603335) is mainly engaged in automobile aluminum alloy wheels. Its main products are tires, wheel hubs and new materials. The power battery recycling business is mainly carried out by its holding subsidiary Guangdong Weimar. The designed production capacity of lithium carbonate is about 16 million tons per year, and the total annual output of cobalt sulfate, nickel sulfate, lithium carbonate, and manganese sulfate is about 56 million tons. Guangdong Weima was registered in January 2020. The company stated on the interactive platform that Guangdong Weima’s products are supplied to Hunan Bangpu Recycling Technology Co., Ltd., GEM and other related industry companies. The biggest characteristics of Dishengli are the company's small market value, low stock price, relatively perfect technical form, dense short, medium and long-term moving averages, not far above the annual line, and breakthroughs on both the weekly and monthly lines. From a technical point of view, it has the most explosive power. Strong, but we should also pay attention to market risks.
The companies in the first echelon of power battery recycling have advantages in technology and channels, but the company is too large, and the power battery recycling business is just the icing on the cake; the companies in the second echelon are Tianqi Co., Ltd. and Guanghua Technology. With the rapid development of the power battery recycling business, a company is expected to create a new growth pole and have a certain room for growth; the third-tier power battery recycling business has not yet been verified, and some are based on market expectations for them.
The above content is for reference only.