CATL responds to the explosion accident of China’s largest used battery recycling base: limited impact

On the evening of January 7, the domestic power battery leader Ningde Times New Energy Technology Co., Ltd. (hereinafter referred to as “Ningde Times”, 300750)’s grandson company Hunan Bangpu Recycling Technology Co., Ltd. (hereinafter referred to as “Hunan Bangpu”) exploded and caught fire. , Arouse market attention.

In response to this, Ningde Times responded to The Paper on January 8th, saying, “A fire accident occurred in the company’s subsidiary factory. We immediately instructed Hunan Bangpu to do a good job of rescue and accident handling on the spot after receiving the news. That night. The fire has been extinguished, and Hunan Bangpu is currently fully cooperating with relevant departments in investigating the cause of the accident, and doing its best to ensure the treatment of the injured.”

Ningde Times stated that the company has required all units including Bangpu to strictly implement safety responsibilities, conduct hidden danger investigations, and initially assessed the limited impact of the Bangpu factory accident on the company’s production and business operations. “Here, the company also deeply apologizes for the social impact of the accident, as well as the wounded and their families.”

According to the official report, the accident occurred in the workshop of the old factory in Bangpu, Hunan. After the accident, the main persons in charge of the Ningxiang Municipal Party Committee, the Municipal Government, and the Ningxiang High-tech Zone Management Committee rushed to the scene as soon as possible, and the Ningxiang City Fire Brigade dispatched multiple fire engines to fight the fire. At present, the fire has been brought under control and no one has died. All the injured have been sent to the hospital for treatment. The cause of the accident is under further investigation.

“It is said that the old ternary precursor factory in Hunan Bangpu exploded.” Regarding the impact of the above-mentioned accident on the battery market, Mo Ke, chief analyst of True Lithium Research, told Peng Mei News reporter that Hunan Bangpu’s 80,000-ton precursor production capacity was in the old factory. Only 15,000 tons, which is not a large proportion, and the Ningde era may mainly produce lithium iron phosphate batteries instead of ternary batteries in the next two to three months. Therefore, personal judgment, even if the old factory stops production for rectification, the overall impact will be small.

“However, if the government requires that all precursor plants be reorganized, it will have a great impact.” Merck believes that if it is a large-scale reorganization, it is very likely to cause the price of precursors to rise.

The ternary precursor is one of the main materials for the production of ternary batteries. Ningde Times confirmed to The Paper that Hunan Bangpu produces ternary precursors. According to the company’s annual report, the company can process, purify, and synthesize valuable metals such as nickel, cobalt, manganese, and lithium in waste lithium-ion batteries to produce ternary precursors for lithium-ion battery materials. Realize recycling.

According to the data from Tianyan Check, Hunan Bangpu was established in January 2008 with a registered capital of 60 million yuan. Its business scope includes the research and development, production, processing and sales of new materials, batteries and new energy; batteries, waste batteries, plastics and nickel-containing, Collection, utilization and sales of non-ferrous metal wastes of cobalt, copper and manganese. The company is a wholly-owned subsidiary of Guangdong Bangpu Recycling Technology Co., Ltd. (hereinafter referred to as “Guangdong Bangpu”). CATL holds 52.88% of Guangdong Bangpu’s shares and is the largest shareholder.

According to official website information, Hunan Bangpu is currently China’s largest waste battery recycling base, with an annual recycling and processing total of more than 6000 tons of waste batteries, and an annual production of nickel cobalt manganese hydroxide (ternary precursor) and lithium nickel cobalt manganese oxide (three Meta materials), lithium cobalt oxide, cobalt chloride, nickel sulfate, cobalt sulfate and cobalt tetroxide amount to 4500 tons.

It is worth noting that Hunan Bangpu also made important contributions to the operating profit of CATL. Financial report data shows that Hunan Bangpu achieved revenue of 5.155 billion yuan in 2019 and realized net profit of 639 million yuan. In the same period, the net profit of Ningde Times was 4.56 billion yuan, and the former accounted for about 14% of the overall net profit of Ningde Times.

CATL was established in 2011. Its business covers the R&D, production and sales of power battery systems and energy storage systems for new energy vehicles, as well as key areas in the industry chain such as battery materials, battery systems, and battery recycling. Its main products include power battery systems, storage Energy system and lithium battery materials. In the first three quarters of 2020, the company achieved operating income of 31.522 billion yuan, a year-on-year decrease of 4.06%; net profit of 3.357 billion yuan, a year-on-year decrease of 3.10%.

Perhaps affected by the news of the accident, Ningde Times’ stock price fell on that day. As of press time, it was reported at 403.68 yuan per share, down 2.31%.

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