- End of Summit
- With the support and trust of companies in cobalt and lithium industry, Asian Metal has successfully organized 5th World Cobalt & Lithium Forum on April 18-20 2013 in Chengdu Sichuan, China. This forum is solely sponsored by Luxiang Co., Ltd., and great supported by Hunan Yacheng New Materials Development Co., Ltd. and Jiangsu Xiongfeng Technology Co., Ltd.. About 150 delegates both at home and abroad attended the event.
- On the morning of April 18, Mr. Rongqing Ke, Chairman & President of Luxiang Co., Ltd. and Honorary Chairman of the forum gave the opening speech after guests taking their seats. After then, the compere—Miss Joy Kong, Associate Analyst in Minor Metals Department of Asian Metal announced the beginning of this forum.
- Mr. Xiaoguang Wang, Director and Researcher of Strategy Research of Chinese Academy of Governance gave a report on “New Leadership”. The report integrally reviewed the economic trend in 2012, and analyzed the current economic difficulties, and made the prediction about the trend of the future market .Besides, he pointed out that new leaders pay much attention to the new energy and the environmental protection. Moreover, Mr. Wang also illustrated the transformation and reformation of government function in simple terms.
- The Vice-President of Research Department of US Nanocorp, and Technical Consultant of Luxiang Co., Ltd., Mr. Dai gave a report named as “Lithium Resources Development and Applications in Green Products and Energy”. Mr. Dai dissected the distribution, development and products application of lithium resources from the view of academic point, and he made a prediction of future development and usage of lithium products. The report pointed out that lithium product has changed the life of human beings, and the development of EV and new energy boosts the development of lithium resources. Besides, he told new lithium products will emerge endlessly; measured lithium resources could meet the demand from EV production, and current lithium output should be improved further as the current level could not meet the demand in the future; besides, developing green products and energy is the major motivation of current lithium development.
- After the coffee break, the General Manager of Shenzhen Tianjiao Science & Technology Development Co., Ltd. Mr. Weidong Wang gave a report on “Ternary Materials of New Power Battery and Metal Resources”. He pointed out that analysis cathode materials of Li-ion batteries’ the demand for Co& Li in different fields, and expound the demand for Li&Co materials from electric vehicle industry in the future market, and made the conclusion that the demand for cobalt and lithium is huge. Besides, he introduced the improvements of ternary material in the power battery field, and the improvements in safety field of power battery. Moreover, he emphasized that technical reform and innovation play a great role in one company’s development.
- After then, Mr. Hui Jiang, General Manager of Nanjing Haolun International Trade Co., Ltd., analyzed the cobalt metal market. He made the speech on the point of fundamentals and prices of cobalt metal, and pointed out that China’s cobalt market has seen serious oversupply in the past three years, and inventories reached to 26,300t ended late 2011. Cobalt market sees supply gap in 2012. China’s cobalt market was weaker than overseas market. Import volume of China’s cobalt products will decline, while export volume will increase. Consumption of China’s electrolytic cobalt and cobalt powder keeps relatively stable and consumption of cobalt salt increases rapidly, which is mainly driven by battery consumption. Moreover, he told that world’s cobalt output decreased by 5% in 2012, recording a new low over the past years. Consuming of cobalt metal totaled 73,900t in 2012.
- The last report in the morning came from Mr. Guy Bourassa, President and CEO of Nemaska Lithium Inc.. During the course of this presentation, Nemaska Lithium Inc. made a number of statements with regard to the company’s projects, business strategy and plan, which could be construed as forward-looking. Besides, he made a bold and precise prediction about lithium hydroxide market. He pointed out that lithium hydroxide’s importance is going to be bigger in the future for its use as active cathode material in batteries for high power applications. That means that the pressure over lithium hydroxide market is going to be much important than over the lithium carbonate, since its capacity is much more limited.
- In the afternoon, Ms. Ping Yuan from Zhuzhou Cemented Carbide Group Co., Ltd. gave a report of “The Status quo of China's Cemented Carbide Industry and the Prospect of Demand for Cobalt Powder.” This report told us that cemented carbide is widely used in different fields, however, Chinese cemented carbide products have lower added values than foreign products and the industry is weak in core competitiveness. China is a large producer, but not powerful. During the report, Ms Yuan made a further reading in industrial distribution, rapid development, technical equipment and product structure optimization. She reported that China is the largest cemented carbide producer by tons in the world. Although there is still a gap between the country and world class levels, huge demand in the twelfth Five-year plan and international demand provide wide room for China’s cemented carbide development with satisfying outlook, and cemented carbide center of the world will be built in foreseeable future with increasing demand and quality for cobalt.
- After then, Mr. Frank Yan, Sales and Marketing Manager in China from Galaxy Lithium (Jiangsu) Co., Ltd. made a speech about lithium supply and markets. Mr. Yan introduced the distribution of lithium resources and the lithium sources and processors in China, and he made the labor and contrast of import and export volumes in 2009-2012. The report announced that lithium is a promising metal in high-tech industry, especially in new energy and new material sectors which boost up the development of lithium industry. Usages in electric bicycle, especially in EV, HEV, PHEV, power tools, energy storage sectors are increasingly growing. A leaping is likely in the near future, so lithium will be a new focus of investors at present or in the future.
- The Secretary General of China Industrial Association of Power Sources （CIAPS）, Mr. Yanlong Liu gave a report about lithium battery market. He analyzed the development status of Chinese and global lithium ion battery industry and the development trend of lithium ion battery market. He pointed out that global Li-ion battery market is now dominated by China, Japan and South Korea. The three countries accounted for about 95% of total production in the world in 2012. As for the development prospect, he predicted that although the portable electronics is the major downstream market of Li-ion battery in 2011-2016, the demand from electric cars and power storage industry will improve constantly. China has massive Li-ion batteries output and most of the products are applied in mobile production, while the make shares in notebook market remain limit due to high consistency requirement. Enterprises should strengthen technical innovation to improve domestic Li-ion battery quality, and he thought that if breakthrough could not be achieved technically and on quality during the Twelfth Five-Year Plan, the large market share could be occupied by overseas batteries.
- The conference ended in the afternoon after the long-awaited hot discussion with many influential market players taking part.
- Topic 1: Cobalt: With previous golden years difficult to re-enact and achieve, is the current appearance of price bottom-out leading to rebound?
- The participants are consisted of Zhongqiang Yan, General Manager of Lanzhou Jinchuan Advanced Materials Technology Co., Ltd., Yingchun Su, Vice General Manager of CITIC Guoan Mengguli Power Source Technology Co., Ltd. and Weidong Wang, General Manager of Shenzhen Tianjiao Science & Technology Development Co., Ltd..
- Here are some ideas shared by those participants：
- Zhongqiang Yan:
- Chinese cobalt enterprises have developed when domestic economy developed rapidly after China joining WTO. Development of enterprises depended on release of African cobalt concentrates; especially the release of cobalt from the Democratic Republic of Congo provided a chance for Chinese enterprises who made great profits in the early stage of rapid economic development, while the growth of enterprises will be certainly challenged now with higher concentration of resources and production capacity. Chinese enterprises lack of cobalt raw materials, and the concentration of the material will be higher and higher in the future. Enterprises with resources will survive after the round of adjustment and recombination.
- Meanwhile, cobalt industry still sees promising outlook, and the market will improve when two industries of electric vehicles and energy storage develop and increase the demand for cobalt. Currently, profits decrease with declining prices as supply exceeds the demand, while the market will turn around brilliantly with huge demand when the two industries develop.
- Yingchun Su:
- CITIC Guoan Mengguli Power Source Technology Co., Ltd. has engaged in cathode material of lithium battery for more than 10 years. We dealt with 200tpy of the material in the beginning, and the volume has increased to 2,000tpy with expanding scale and developing industry, while profits rate is declining all the time. When we entered the market initially, Jinchuan Company sent samples of cobalt tetroxide with 5-10kg, and there was no domestic material with Umicore and OMG controlling the market. However, every domestic company has qualified with high quality product presently, while only those original companies are at the top of the list despite fast development of the industry, and Umicore develops rapidly and ranks the first in cobalt tetroxide and lithium cobalt oxide industries. China has the largest market in the world, but does not have so large enterprises. The above is the feeling of mine as a senior player from the start of the industry till now.
- Weidong Wang:
- Ternary material market has seen many new projects these years with two directions. The majority is low-end duplication with low levels. Meanwhile, we should focus on the other direction of high-end materials which see short supply.
- Topic 2: Lithium: New energy power: thought, and cooperation after consolidation
- The participants are consisted of Dong Yan, General Sales Manager of Sichuan Tianqi Lithium Industries Inc., Huaiguo Shen, General Manager of Beijing Chilith New Sources Co., Ltd., Xiaodong Shao, Vice General Manager of General Lithium (Haimen) Corp., Rongqing Ke, Chairman & President of Luxiang Co., Ltd., Yabin Hou, General Manager of Tibet Minerals Development PLC.
- Dong Yan:
- The lithium salt production capacity of Tianqi lithium is expected to reach 20,000pty in 2013 and the company has entirely purchased Talison. As to the sales in China of Talison, Tianqi supports the current sales policies and leave them unchanged; in terms of Tianqi, we would carry on operation in lithium salt market and strive to build and preserve a lithium market with sound, steady and sustainable development.
- Huaiguo Shen:
- Speaking of Talison’s acquisition by Tianqi Lithium, it has little influence on industrial structure as Talison just has just changed an employer. It is not that a new mine is found. Personally, I reckon that Tianqi should pay high price for the acquisition to become an enterprise with the most lithium resources around the globe. While the future structure of lithium industry depends on the position of Tianqi which could become an international mining company, not a domestic enterprise processing lithium salt producer; while strategies to peer taken by Tianqi rely on itself, and I have noted financial pressures on initial acquisition which has influence lithium ore prices, so spodumene price could be improved moderately which has been expectable financially. Large numbers of Chinese lithium salt producers including those in Sichuan, Xinjiang and Jiangxi, as well as Galaxy rely on lithium ore from Talison. Therefore, Tianqi or Talison will relatively monopolize spodumene supply in the future.
- Xiaodong Shao:
- General Lithium (Haimen) Corp. mainly produces basic lithium salts including battery grade and industrial grade lithium carbonate. The capacity has reached 6,000tpy with 90% for the former one and 10% for the latter. The output plan is relatively unchanged in 2013 with continuous resource problems. Without plans for expansion, we will maintain current output and make efforts to techniques development.
- Rongqing Ke:
- Rongda Lithium started the first-stage project of spodumene mine since 2005 which was completed and put into production in 2010 after Luxiang’s intervention in 2009. The mining and concentrating scale has reached 240,000t and the output of lithium concentrated has stayed at over 30,000tpy in the past two years which will get to around 50,000t this year. Expansion is the next step which is planned to be finished in 2014, if everything goes well, and then the production scale could amount to 1.05 million tons with around 200,000tpy of lithium concentrate output. Luxiang intends to initiate a lithium salt project for increasing self consumption of lithium concentrate.
- Yabin Hou:
- Domestic natural conditions of lithium extraction with brine are indeed arduous with high elevation of mines and instable production, which is the problem faced by every enterprise extracting lithium in salt lake in China. The construction of infrastructure as well as supply of electricity will improve under the support of Tibet Autonomous Region, and instable production is planned to be solved in the coming two to three years.
- 5th World Cobalt & Lithium Forum closed in the hot atmosphere of the discussion.
- On April 19 and 20, part of attendees visited mine area, selecting area, office of Luxiang Co., Ltd. in Tagong town, Kangding county. Visitors were warmly received by Luxiang Co., Ltd.. Delegates from the company explained how to select mine detailedly and visitors had a deeper understanding of Luxiang Co., Ltd..
- Luxiang Co., Ltd. has successfully held controlling interest of Sichuan Ganzi Rongda Lithium Co., Ltd. in August 2009. Wholly-owned takeover of Rongda Lithium Project was approved by China Securities Regulatory Commission in December 2012. Rongda Lithium has the right to exploit and manage the richest Gajika spodumene resources and the highest grade No.134 lode in Ganzi, Sichuan, who owns the biggest reserves of spodumene resources in China. Gajika spodumene is the biggest solid spodumene resource in Asia, and the lithium’s reserves account for 80% of China. The reserves of spodumene are more than 80,000,000 tons in the whole area, and Gajika spodumene is the second biggest spodumene resource in the world so far.
- Asian Metal thanks all insiders and companies participated and supported the meeting, and AM will continue to provide you market information of metals as well as platforms for business communication with continuous enthusiasm and diligent professionalism. Hope to improve together with you!
The Scene of 5th World Cobalt & Lithium Forum
Rongqing Ke, Chairman & President of Luxiang Co., Ltd. and Honorary Chairman of the forum making Opening Speech
Xiaoguang Wang, Director and Researcher of Strategy Research Chinese Academy of Governance
Jinxiang Dai, Technical Consultant of Luxiang Co., Ltd.
Weidong Wang, General Manager of Shenzhen Tianjiao Science & Technology Development Co., Ltd.
Hui Jiang, General Manager of Nanjing Haolun International Trade Co., Ltd.
Guy Bourassa, President & CEO of Nemaska Lithium Inc.
Ping Yuan, Director of Zhuzhou Cemented Carbide Group Co., Ltd.
Frank Yan, Sales and Marketing Manager in China of Galaxy Lithium (Jiangsu) Co., Ltd.
Yanlong Liu, Secretary General of China Industrial Association of Power Sources, CIAPS
From left to right: Yingchun Su, Vice General Manager of CITIC Guoan Mengguli Power Source Technology Co., Ltd., Weidong Wang, General Manager of Shenzhen Tianjiao Science & Technology Development Co., Ltd., Zhongqiang Yan, General Manager of Lanzhou Jinchuan Advanced Materials Technology Co., Ltd. and Joy Kong, Associate Analyst of cobalt and lithium markets of Asian Metal
From left to right: Yabin Hou, General Manager of Tibet Minerals Development PLC, Dong Yan, General Sales Manager of Sichuan Tianqi Lithium Industries Inc., Rongqing Ke, Chairman & President of Luxiang Co., Ltd., Xiaodong Shao, Vice General Manager of General Lithium (Haimen) Corp., Huaiguo Shen, General Manager of Beijing Chilith New Sources Co., Ltd. and Associate Analyst of cobalt and lithium markets of Asian Metal
Dinner time
Dinner time
The Tibetan staff of Luxiang Co., Ltd. presented Kha-btags to visitors
Photo took in Luxiang Co., Ltd.