Latest Update in the China Lithium Market

The Yunnan NDRC Energy Conservation Work Panel issued the "Notice on Striving to Fulfil Tasks on Dual Control of Energy Consumption. The local white phosphorus is a typical energy using product, with power consumption per mt as high as 15,000 kWh. Environmental protection supervision remains strict. The average monthly output of white phosphorus production line from September to December 2021 is required to not exceed 10% of the output in August.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on September 17, 2021

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on September 16, 2021

Net rumours say that CATL (Contemporary Amperex Technology Co., Limited) (300750) intends to contribute C$377 million (US$298 million) to bid for the Canadian lithium company, Millennial, thereby ensuring a stable supply of lithium resources. The offer is said to be about 7% higher than Ganfeng Lithium's previous proposed offer.

The signing ceremony of the cooperation agreement for Shenzhen Yanyi’s lithium battery core materials project with output at 150,000 mt/year was held on September 12 at the Management Committee of Pengshan Economic Development Zone in Sichuan.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on September 15, 2021

Pilbara Company, one of the largest producers of lithium pyroxene concentrate in Australia, conducted its second lithium pyroxene concentrate auction on September 14.

From September 12 to 17, SMM New Energy Division Director Wang Tian and marketing consultant Yu Lei are leading the SMM staff and members of the delegation to visit raw material enterprises of lithium battery industry in Ningxia and Inner Mongolia, with the purpose of facilitating closer and in-depth cooperation as well as more effective and sustainable communications.