① In response to the news that the US was easing tax credit restrictions on electric vehicles using Chinese graphite for batteries, Hong Kong stocks of China Graphite once rose more than 53% in the intraday period, A-shares of Zhongke Electric rose about 16% in the intraday period, and Baichuan shares stopped; ② In response, some industry insiders told the Financial Federation reporter that the US market did not account for a large share, but the impact on the industry was limited.
Financial Services Association, May 6 (Reporters Liu Yue and Zeng Chuchu) Recently, news that “the US is easing tax credit restrictions on electric vehicles using Chinese graphite as batteries” attracted capital market attention. Today, Hong Kong stocks of China Graphite rose more than 53% in the intraday period, Zhongke Electric (300035.SZ) rose about 16% intraday, and Baichuan shares (002455.SZ) rose to a halt. However, CIFA reporters learned in multiple interviews that industry insiders believe that the news is beneficial to the industry, but its impact is limited.
Stimulated by the above news, today, the Hong Kong stock of China Graphite rose more than 53% intraday. In terms of A-shares, Zhongke Electric rose about 16% in the intraday period, Baichuan shares rose or stopped, Shangtai Technology (001301.SZ) rose or stopped in the intraday period, and Xiang Fenghua (300890.SZ) closed up more than 7%.
Person A of an anode materials company told the Financial Federation reporter that the US side is slowing down the IRA (Inflation Reduction Act) tax credit restrictions on car companies using Chinese graphite materials. It can be seen that overseas electrification development is still dependent on Chinese anode materials, so it is definitely beneficial to China's anode materials industry.
B, another leading anode materials company, also said that this shows that the US NEV market is currently inseparable from the supply chain formed by Chinese companies. However, looking at the global market, the US market currently does not account for a large share, or even smaller than the European market; in addition, “we” believe that based on factors such as the speed of infrastructure, electricity facilities, and skilled worker support within the US, it is difficult to estimate the US anode material production capacity within 3-5 years. Therefore, taken together, IRA shows flexibility in Chinese graphite, and is more a true picture of the US NEV market still inseparable from the supply chain of Chinese companies at this stage.
Referring to the impact on the company's overseas projects, the aforementioned anode materials company person A said that this news actually had little impact on the commissioning of overseas projects, and the company's overseas projects will continue to advance according to the planned schedule. This relaxation of restrictions has reduced the pressure on overseas projects to be completed and put into operation to a certain extent, which is conducive to smoother and safer project construction.
Today, the Financial Services Association reporter also telephoned Zhongke Electric as an investor. A company source said, “I am concerned about this news, but I don't think it has had any impact on the company,” and also said, “The company recently reviewed a bill on an overseas project, and we still need to wait for the shareholders' meeting to pass it before proceeding.”
Furthermore, the Western Securities and Telecom team posted an article on its public account yesterday stating that (the US side's) deregulation of the negative electrode (graphite) is nominally difficult to trace upstream; in essence, it is difficult to expand production in the US. Producing 1 ton of anodes requires more than 10,000 degrees of electricity. The single anode process consumes huge amounts of electricity, and the graphitization process involves various issues such as energy evaluation, environmental protection, employee safety and health, etc., and is extremely difficult to develop. Currently, there are still very few well-known anode projects in the US.
According to reports, lithium battery anode materials can be divided into two categories: carbon and non-carbon anode materials according to their different anode active substances. Among carbon-based materials, natural graphite and artificial graphite are the most widely used. According to USGS statistics, China has long occupied the top ranking of natural graphite production in the world. In 2022, China's natural graphite production was 850,000 tons, accounting for 65.38% of the world's total production.
According to Xinyi's data, in 2023, CR3 companies from Betray, Shanghai Shanshan (Shanshan Co., Ltd.), and Jiangxi Zichen (Putailai subsidiary) still performed well. Betray's negative materials accounted for about 22% of the global market share. The production of anode materials in industries such as Dongdao, Hebei Kuntian, Jinhuineng, Carbon 1, Qingdao Keshuo, and Keda New Materials also broke through the 20,000 ton annual output mark.
In terms of overseas market share, in 2023, Betray, Shanshan Co., Ltd., Putailai, Xiang Fenghua and Zhongke Electric's overseas revenue share was 20.16%, 11.79%, 14.88%, 14.38% (other regions), and 7.31%, respectively.