China has released the 2024 industry forecast for 83 battery and energy metal enterprises, with 45 of them projecting losses.
According to the “Huaxia Times” report on February 15, the 45 companies expecting losses account for 54% of the total 83. The two leading lithium companies are the biggest losers, with Ganfeng Lithium expecting at least 1.4 billion yuan in losses and Tianqi Lithium expecting at least 7.1 billion yuan.
Among the 45 companies with projected losses, the total amount is between 23.436 billion yuan to 29.26 billion yuan, with an average loss per company ranging from 0.521 billion yuan to 0.65 billion yuan. Among them, 12 companies are expecting losses of less than 100 million yuan; 28 companies are expecting losses between 100 million and 1 billion yuan; 4 companies are expecting losses between 1 billion and 2 billion yuan; and the company with the most significant loss is Tianqi Lithium, expecting at least 7.1 billion yuan in losses.
The top 5 companies with the largest losses are Tianqi Lithium, Ganfeng Lithium, Nandu Power, Tianji Holdings, and Defang Nanotechnology, whose main products include lithium minerals, lithium salts, lithium batteries, lead batteries, lithium hexafluorophosphate, and lithium iron phosphate, totaling a loss of 12.21 billion yuan, accounting for 50% of all the companies with losses.
In 2023, 18 out of 57 companies announced losses totaling 8.7 billion yuan.
According to reports, the common causes of these companies’ losses are the decline in lithium product prices and asset depreciation, attributed to fluctuations in raw material prices and market competition. Tianji Holdings, which suffered losses of 1.25 billion to 1.5 billion yuan, stated that the industry faces overcapacity, predicting a decline in future profit capabilities. As a result, its goodwill assets have been impaired by approximately 1 billion yuan.