China's power battery industry is at a critical stage of transition from technological catch-up to synchronous development. With the support of national policies, disruptive technological breakthroughs and collaborative innovations need to be further realized. On June 21, 2017, “18th China· Qinghai Green Development Investment Trade Conference· lithium industry international summit forum” gathered 800 guests in the world, held by Qinghai government, MIIT, MOST and China electric car 100 people meeting.
On the afternoon of June 21, “global lithium resources development and utilization and build benign industrial ecology” was held to discuss on the issues about construction of the lithium electric industry characteristic ecological group, building the lithium resource industry high ground, promoting the development and efficient utilization of lithium resources in salt lake, research and development of new technology and new materials of power battery in Yanhu, promoting green cycle development of lithium industry and realizing the green recycling and scientific regeneration of power batteries to build a healthy industrial ecology.
Xianglie LIU, president of Ningbo Jinhe Lithium Materials Co.,Ltd, introduced the opportunities for the development and demand of the global electric vehicle market, as well as the current dynamic battery material and energy density.
Good afternoon, everyone! I am Xianglie LIU, president of Ningbo Jinhe Lithium Materials Co.,Ltd. I come from South Korea. I feel very honored to be invited to speak at the summit forum today, and thank you very much for the opportunity to give me this speech. My speech is divided into four parts.
For market part, I have spoken too much on the Morning. Now I give a brief introduction. The market for lithium batteries accounted for 30% of the total in 2016, more than 20 billion dollars. It can be seen that the development speed of lithium battery is very fast by 2020. The consumption battery is maintaining a certain growth rate, and the growth rate of EV and energy storage battery is very fast. Look at the positive electrode material. By 2016, there will be 300,000 tons of sales, of which lithium cobalt oxide accounts for 80%, and the ternary material will account for more than 40%.
In conclusion, we can consider the following four aspects according to market information.
Firstly, environmental problems. What new rules can be developed on the basis of sustainable development. The clear direction is the development of new and renewable sources of energy, including solar and wind power. From the perspective of renewable energy, our current applications of lithium batteries, including EV, energy storage battery, is a big development.
Secondly, industry 4.0, that is the fourth industrial revolution. The fourth industrial revolution is mainly the development of digital fields, including the integration of production and integration, especially artificial intelligence, including unmanned aspects. The world's biggest companies, including Google and apple, are ramping up their investment in driverless cars. It is estimated that we will see driverless cars on the streets in the next three to five years. Driverless cars will definitely need our lithium-ion batteries, so we need to invest more in that.
The other thing we need to focus on is Tesla. Tesla has overtaken traditional car companies, including BMW, with a market capitalisation that has overtaken traditional car companies and is expected to see a second and third Tesla in the future. Tesla and panasonic of Japan have set up a new plant in a joint venture that is expected to launch a partnership with Shanghai automotive next week. What we need to focus on is how the car company and the power battery factory work together, in what form.
Fourth, China and India market. The market situation in China is clear. In India, they plan to have all electric cars by 2030. Norway also publishes its entire electric vehicle by 2030.
I think that all of us, the experts in the lithium industry, should focus on these four aspects to plan future strategies.
On the another hand, let me introduce the situation of materials briefly. In three areas, small consumption batteries, EV and energy storage batteries are basically developed with the materials of lithium cobalt oxide, ternary materials and lithium iron phosphate. The requirements for these materials are shown in the PPT above, and I think everyone is very clear. The current demand for consumer batteries is high energy density and high voltage. The most used material so far is lithium cobalt oxide, and you should be aware of the recent uptrend in cobalt prices, so more ternary material may be introduced in the future. In order to be able to achieve high capacity and high voltage material characteristics, there will also be some doping. Energy storage is mainly used for lithium iron phosphate and ternary materials. Compared with other fields, its capacity is not high, but it requires long circulation and low cost price. From the perspective of the demand of international customers recently, in the aspect of energy storage for ternary material demand is increasing, people more attention vehicle power battery using a material with the highest requirement is security. Recently, Ni-MH batteries have been largely disused.
This is the demand for energy density in China, Japan and the United States by 2020. Charging up to 100 miles per charge by the end of last year, the second generation of batteries began this year, and its demand is 200 miles on a charge. In order to meet this requirement, the materials previously used for power batteries including 111 and 523 are not available. International customers started asking for 622 this year, a sharp increase. By 2020, the third generation of batteries, charging a second time 300 miles, we predict that it will take more than 811 materials, including NCA, 400 miles by 2025 and 500 miles by 2030. We also need to strengthen the development of materials for this requirement.
There are a few things that we need to focus on in terms of materials. The first is how much distance your material can travel at a time, the endurance capacity. The key concerns are 622, 811, and NCA. The second is the cost. The most important is the price of raw materials, and today also mentioned how the price of cobalt and lithium can be balanced. In terms of battery materials, in order to reduce this cost, we should also consider how to make large-scale production, and how to achieve the production of more than 50,000 tons. How these materials can be reused after mass production also requires us to pay attention.
I'd like to give you a brief introduction of some of the products that our company is mainly developing. The digital aspects, including 523 and 111, 622, 811 and NCA, are also in mass production, and are also available to international customers.
This image is a global layout of our company. There is a TMR regeneration plant in South Korea. The materials are recovered from waste batteries for nickel, cobalt and manganese, which are supplied to the former body factory. The precursor factory will then provide the former body to Yuyao and Hubei factories to make the positive material and then provide it to customers. Our factory in Hubei province will build a fully automatic production line of 7200 tons of high-nickel products this year, which will probably be completed in October. Our capacity planning is to reach 50, 000 tons of capacity by 2018. This is the renderings of a 100,000 ton production base in the south that we are planning now. This picture is some of the clients we are working with now, and this is one of our development routes, including one generation, two and three generations of products.
Here are some of our products, including high ratio, high energy density and long circulating type. This is a 523 classification, and there is a high voltage product that is currently replacing lithium cobalt oxide products and is trusted by many customers.
After the introduction of some high nickel products, the time relationship will not be introduced on this side. If you have any questions, please contact me during the break. Thank you!