Lithium metal is extracted in two forms: lithium from ores and lithium from salt lakes. Lithium from ores is divided into two types: lithium spodum and lithium mica.

Kefeng Lithium and Tianqi Lithium use imported spodumene to extract lithium, which is currently the mainstream production method. The relatively high quality spodumene basically comes from abroad, such as Australia. China's spodumite mineral quality is not high, reserves are not abundant. According to statistics, the current price of spodumene concentrate is around US$1,000 per ton (calculated at exchange rate of 6.4). According to the calculation of one ton of lithium carbonate product produced from 8 tons of spodumene concentrate, the raw material cost will be 64,000 yuan, plus 2 With more than 10,000 manufacturing costs, the cost of one ton of lithium products is around 84,000 yuan, and gross profit is about 76,000 yuan/ton. For 2018, all of Lifan Lithium's production capacity of lithium carbonate products is expected to be approximately 60,000 tons. The price per ton is calculated based on 160,000 yuan. The gross profit margin for sales is 35%, and gross profit of 3.36 billion yuan can be earned in one year.

Lithium mica Lithium in the A-share exclusive target company is Jiangte Motor. According to Tianfeng Securities, Jiangte Motor's subsidiary Yichun Silver Lithium New Energy adopts lithium mica refining technology, which can produce 10 tons of lithium carbonate per day, and the cost is controlled within 70,000 yuan/ton. As the price of lepidolite is significantly lower than that of spodumene concentrate, if the company's Lion Ridge Mine can be put into production in March 2018 and realize self-sufficiency in minerals, the cost of lithium carbonate is expected to drop to 50,000 yuan. Since there is no gross profit margin for sales of lithium mica, it can only be estimated based on the sales data of lithium carbonate at RMB 160,000/ton. Then, lithium mica technology is used to extract lithium carbonate at a cost of RMB 110,000 per ton, and its 15,000 tons of production capacity reaches the end of production. The annual gross profit was 1.65 billion yuan.

Lithium extraction from salt lakes is the use of brines rich in magnesium and lithium in the plateau, and physical and chemical methods are used to extract lithium. The cost is very low, but it is not subject to technological development and poor geographical conditions. At present, there are many listed companies participating in this project, such as Salt Lake, Tibet Mining, Keda Clean Energy, Tibet City Investment, Zangge Holdings, and Lanxiao Technology.

These companies are located in remote areas in the Qinghai-Tibet region, because the salt lakes are basically on the plateau, with remote locations, poor basic production conditions and living conditions, ecologically fragile conditions, and cold weather, which are not conducive to large-scale production and personnel introduction. Therefore, even if the production costs are low, they are hidden. The cost of sex is very high. According to the data of Lanke Lithium, the company's production cost for lithium-lithium battery-grade lithium carbonate in Salt Lake is about 40,000 yuan/ton, considering the hidden cost, relaxing to 50,000 yuan/ton, then the salt lake will take lithium per ton of lithium carbonate. Profit is 110,000 yuan. According to Lanke Lithium's plan for 20,000 tons of lithium carbonate production capacity in 2018, the gross profit can reach 3.3 billion yuan.

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