Source: Bloomberg
Author: Annie Lee
Welcome to the world of lithium ore auction.Here, after countless bidding, companies eventually spent a thousand -fold price of the starting price, and they promised to take out hundreds of millions of dollars to buy buyers from time to time.
China is the largest electric vehicle producer, and lithium is the key element of electric vehicle batteries.However, China only accounts for a small part of the world's confirmation of lithium reserves, which means that more than half of lithium demand depends on imports to meet.
The latest lithium mine mining license will be shot next month in Yunnan Province.The local official announced that it was listed to the five -year exploration rights of two lithium mines in Kunming and Yuxi City, which highlighted Beijing's determination to speed up domestic mining.
After the fierce competition in August has pushed up the price of two lithium mines in Sichuan Province, these auctions will be closely watched.A subsidiary of Inner Mongolia's large and medium -sized mining industry has taken the exploration right of lithium mines in Malcon City, Sichuan Province at a price of 4.2 billion yuan, reaching more than 1,300 times the starting price.The final bidding of the auction exceeded 11,000 times.Another mine located in Jinchuan County also took a sky -high price of 1 billion yuan, reaching nearly 1800 times the starting price. Buyers were Sichuan's subsidiaries.
Sotheby's may disagree with these auctions.Dennis IP and Leo Ho said in the email that Sichuan auction "Heat and countless bids" in the email.They said, but to a certain extent, it was because the starting price was very low, and the price increase was only 100,000 yuan each time.
In addition, some companies participate in bidding to ensure that they are eligible to participate in other auctions in the future.
But after two years of rise and a record high of 59,7500 yuan/ton in November last year, the price of lithium lithium carbonate has fallen to 18,9500 yuan, although this is still several times the historical lows touched in 2020.
The plunge in prices may be the reason for the failure of February auction. At that time, the subsidiary of Xinjiang Zhite New Materials Co., Ltd. was a subsidiary of Xinjiang for the exploration of a lithium mine in Xinjiang, but it failed to pay.
Yamato analysts said that the price may fall too hard, resulting in the project's unsuitable.
In May last year, the first auction of the controlling stake in Zuojiang County, which owns a lithium mine in Sichuan, failed, because the bidders did not pay the price of 2 billion yuan.However, these five -day auction did attract nearly 1 million online audiences.
Yunnan's latest lithium ore bidding will require bidders to pay margin when the quotation reaches a certain level, so as not to repeat the auction failure.
