Photovoltaic Shutdown Wave, Lithium Investment Weakened!

At present, some photovoltaic companies have a holiday for employees for 3 to 16 months. The main reason behind this is the reduction of enterprise orders, the suspension or delay of new projects. As early as 2023, a number of photovoltaic companies disclosed project suspension, delay announcements, and even filed for bankruptcy.

A number of construction projects no longer continue a number of cross-border new energy photovoltaic listed companies have announced the termination or delay of production. In June, a listed communication company that entered photovoltaic announced the termination of a 5GW HJT battery project with a total investment of 4.5 billion yuan. A garden enterprise terminated a PV project of 469 million yuan, withdrew the application documents, and no longer continued to promote the matter. A photovoltaic company raised funds of not more than 2 billion yuan for an annual output of 4.8GW high-efficiency heterojunction battery and 1.2GW module production line projects and supplementary working capital, which has been terminated.

At present, the PERC type battery produced by a ST listed company has been discontinued. According to the news, the monocrystalline silicon photovoltaic cell business accounted for 95.90% and 61.53% of the revenue in the latest year and phase one, respectively. Sunflowers, Mountain Coal International, Ribo Fashion and Systovi also announced the suspension of some PV projects.

Some planned to put into production of photovoltaic projects terminated, an important reason: due to the lack of existing photovoltaic orders.

Some companies opened a new production line, found that there is no order, can only dissolve the newly recruited employees in place, or give employees a long-term vacation. Although some first-line component manufacturers announced as early as the beginning of this year, more than 50% of the annual orders have been basically unhindered, but most should be from Europe and the United States, Asia, Africa and Latin America and the Middle East market, rather than the domestic market with serious internal volume.

Second - and third-tier companies, especially component manufacturers in the main market in China, are facing a new round of price war and order saturation and other problems. Domestically, it is expected that more than 70% of the components are obtained by the TOP10 component manufacturers alone, so even if the demand for components increases in the next few months, the problem of insufficient orders may still exist. Further, some component manufacturers are automatically giving up orders with ultra-low prices. At the end of last year, JinkoSolar Chairman Li Xiande revealed to Energy 1 that the domestic component bidding price in late December was so low that the company actively abstained from bidding. Similarly, some time last year, a Longi company executive said that the component price at the time had fallen below the cost line.

However, the "2024-2025 Energy Saving and carbon Reduction Action Plan" notice issued by The State Council is conducive to photovoltaic companies in the next 2 to 3 years or so to improve business prosperity. By the end of 2025, non-fossil energy will account for 39% of electricity generation. Just before, it is expected that the proportion of non-fossil energy consumption in 2025 will be 20%, indicating that the target of new energy generation at the national level has been upgraded again. The article also stipulates that energy conservation and emission reduction continue to promote distributed photovoltaic, accelerate the construction of large-scale wind power photovoltaic base delivery channels and distribution network transformation, and vigorously develop microgrids and virtual power plants.

Lithium battery

In recent years, a number of listed companies have announced the suspension or termination of lithium projects, and the investment enthusiasm of the lithium industry has decreased.

Baoming Technology 6.2 billion project terminated

Baoming Technology announcement on May 21, recently, the company and Ma 'anshan Ningma new functional area management Committee signed the "Baoming technology composite copper foil production base project investment and construction contract and supplementary agreement termination agreement", Baoming technology said that due to the company's investment planning changes, in order to avoid the waste of project resources investment, effectively safeguard the interests of the company and all shareholders, After careful research and consensus with Ningma New Functional Zone Management Committee and Ma 'Anshan Hengwang Industrial Park Operation and Management Co., LTD., the Project investment and Construction Contract and Agent Construction Contract are terminated.

Yi Cheng New energy intends to terminate 2.3 billion fixed increase

On May 6, Yi Cheng New Energy announced that its board of directors reviewed and passed the Motion on Terminating the issue of shares to a specific object and withdrawing the application documents, and agreed to terminate the issue of shares to a specific object. According to the fixed increase plan, Yi Cheng New Energy originally planned to issue no more than 652,844,827 shares and raise no more than 2.305 billion yuan. It is used for the development and production of negative electrode materials for lithium-ion batteries (Phase II), the negative electrode materials project for high-performance lithium-ion batteries with an annual output of 30,000 tons, the Baofeng County 100MW distributed photovoltaic power plant project, the Weidong District 50MW distributed photovoltaic power plant project and supplementary working capital.

Tianli lithium energy to terminate the ternary material investment project

On April 29, Tianli Lithium Energy announced that the company intends to terminate the "Huaibei ternary cathode material construction project" and intends to use the unused raised funds of 531 million yuan to supplement the working capital. Tianli Lithium Energy said that the ternary anode material industry is facing many challenges, increasing production costs, decreasing processing fees, and weakening profitability, which have led to the continuous decline in the output of ternary materials. Terminating the follow-up capacity construction of the fundraising project and fully digesting the existing capacity is a more stable business strategy choice.

China Soft Technology terminates 450 million projects

On April 26, China Soft Technology announced that it would terminate the annual output of 12,000 tons of lithium battery electrolyte additive project and an annual output of 6,000 tons of vinyl fluoride carbonate (FEC) lithium battery electrolyte additive project. It is understood that in 2021, Wuxue Odesai Chemical Co., LTD., a wholly-owned subsidiary of Beijing Odesai Chemical Co., Ltd. of Huasoft Technology Holdings, intends to invest 30 million yuan in a new "annual output of 12,000 tons of lithium battery electrolyte additive project", which is decided to terminate after careful evaluation and comprehensive consideration by the company.

Huiyun Titanium Industry terminated 100,000 tons of iron phosphate project

On April 22, Huiyun Titanium Industry announced that it would terminate the investment and construction of an annual output of 100,000 tons of new energy material iron phosphate project. The total investment of the project is expected to be 63,49,600 yuan, and the construction period is expected to be 12 months. For the reasons for the termination of the project, Huiyun Titanium industry explained that in view of the new energy material market environment in China and the market supply and demand of upstream raw materials of new energy batteries have changed during the process of promoting the project, combined with the company's own actual operation and management and comprehensive consideration of the company's fund use efficiency, a comprehensive assessment believes that the current implementation conditions of the project have changed. Its investment and construction benefit forecast is less than expected, the company decided to terminate the project construction.

Fangyuan shares nearly 1.9 billion fixed increase terminated

On April 19, Fang Yuan Shares issued an announcement that the company held A board of directors meeting on April 18 to consider and pass the "Motion on terminating the issue of A-share shares to specific objects in 2023". It is reported that Fangyuan shares issued a fixed increase plan on June 27, 2023, showing that the total amount of funds raised by issuing shares to specific objects does not exceed 1.886 billion yuan, which is intended to be used for battery grade lithium carbonate production and waste lithium iron phosphate battery comprehensive utilization project (Phase I) and supplementary working capital.

Black Sesame announced the suspension of 3.5 billion lithium battery project

Also on April 19, in response to investor questions, Black Sesame Company said: "In view of the significant changes in the new energy battery market situation since the second half of 2023, there are significant differences with the assumptions of the company's project feasibility study, according to which the company closely observes changes in external conditions and calmly faces major market changes, does not push forward, and suspend the project construction."

Epilogue

From the rush to the end of the moratorium, the lithium industry has experienced great ups and downs in the past two years, and began to enter the industry reshuffle period. With the slowdown of lithium growth, some enterprises that do not have advantages in cost and technology, especially cross-border enterprises, have to choose to withdraw from the market in the fierce market competition, which is the inevitable result of technology iteration and market survival of the fittest. On the other hand, the lithium battery industry has extremely high requirements for product safety, quality and performance, and high-end and high-quality production capacity has been scarce. With the continuous development of the industry, the backward lithium production capacity is gradually cleared, which is conducive to the expansion of high-quality production capacity. Recently, the Ministry of Industry and Information Technology revised the formation of lithium battery industry standard conditions and announcement management measures (draft for comments) mentioned that to guide enterprises to reduce manufacturing projects that simply expand production capacity, strengthen technological innovation, improve product quality, and reduce production costs. Under the guidance of policies and norms, the development of the lithium battery industry tends to be rational, thus promoting the sustainable and healthy development of the lithium battery industry.