Industrial Silicon Industry Newsletter

Issue 6

Sichuan Nabi Silicon-based Materials Research Institute

March 18, 2022

I. Macro articles

(1) Economic Development

1, [The Ministry of Housing and Urban-Rural Development's New Policy to Promote Green Development of Buildings] The Ministry of Housing and Urban-Rural Development issued the "14th Five-Year Plan" ; Housing and Urban-Rural Construction Technology Development Plan" and "14th Five-Year" Building Energy Efficiency and Green Building Development Plan. The former requires the development of high-efficiency and intelligent photovoltaic building integrated utilization and the construction of "light storage, direct and flexible" new building power systems; the latter requires that by 2025, new building solar photovoltaic The installed capacity is more than 0.5 100 million kilowatts, the replacement rate of renewable energy in urban buildings reaches 8%, and the proportion of electricity consumption in building energy consumption exceeds 55%.

(II) Element Control

1、[Carbon emission allowances have been in the past 8 months, and the transaction performance has shown a phenomenon of first delay and then urgent] According to data from the Shanghai Environment and Energy Exchange, on March 11, the national The listed closing price of carbon emission allowances (CEA) in the carbon market was 57.60 yuan/ton. From the official launch of online trading on July 16, 2021 to March 11, the cumulative transaction volume of carbon emission allowances (CEA) in the national carbon market was 189 million tons, with a cumulative transaction value of 8.180 billion yuan. Experts believe: "The carbon trading market can resolve the contradiction between the supply and demand sides of energy such as coal, oil and natural gas, promote the application and promotion of clean energy such as wind energy, water energy, hydrogen energy, and light energy, and balance the limited reserves of energy resources and energy consumption. The relationship between the growing demand, so the function and role of the national carbon trading market will become increasingly apparent. ” However, judging from the trend of carbon quota transaction volume and transaction price in the national carbon market, it shows a trend of “carbon prices are rising steadily, transaction volume needs to be improved, and transactions are significantly active as the performance period approaches”. Market tracking data shows that : Three-quarters of transactions took place in December 2021. This may mean that: “ emission control units still mostly use ‘completion of compliance’ as their trading motivation, and carbon trading awareness and strategies are not yet complete. ”

2、[The electricity consumption of the whole society in February increased by 16.9% year-on-year] National Energy The latest data released by the bureau shows that in February, the electricity consumption of the whole society in my country reached 623.5 billion kWh, a year-on-year increase of 16.9%. In terms of different industries, the electricity consumption of the primary industry was 7.7 billion kWh, a year-on-year increase of 15.4%; the electricity consumption of the secondary industry was 375.6 billion kWh, a year-on-year increase of 14.5%; the electricity consumption of the tertiary industry was 118.2 billion kWh, a year-on-year increase of 17.4%. %; the domestic electricity consumption of urban and rural residents was 122 billion kWh, a year-on-year increase of 24.8%. From January to February, the total electricity consumption of the whole society was 1,346.7 billion kWh, a year-on-year increase of 5.8%.

(3) Currency and Capital

1, ["About the property of the person who violates the securities law is first used to bear civil compensation liability Regulations on Relevant Matters (Draft) "Public Solicitation for Opinions] In order to implement the principle of giving priority to civil liability for compensation and effectively protect the legitimate rights and interests of investors, the China Securities Regulatory Commission and others have jointly drafted the "Regulations on Matters Concerning the Prioritization of the Property of Persons Who Have Violated Securities Laws for Bearing Civil Compensation Liability". Regulations (Draft)", and solicit public comments. The draft mainly stipulates the subject of the compensation application, the application period and amount, and the application processing process.

2、[Money supply M2 in February increased by 9.2% year-on-year] The central bank released 2 Monthly monetary data: At the end of February, the balance of broad money (M2) was 244.15 trillion yuan, up 9.2% year-on-year; the balance of narrow money (M1) was 62.16 trillion yuan, up 4.7% year-on-year, 2.7 percentage points lower than the same period last year; The money (M0) balance was 9.72 trillion yuan, a year-on-year increase of 5.8%. However, compared with January 2022, M0 decreased by 8.47%, and the net cash collected was 896.1 billion yuan; M1 and M2 increased by 1.25% and 0.43% respectively.

3、[Facilitating the listing of small and medium-sized enterprises (SMEs) for listing and financing of Hong Kong version of SPAC] Recently, Hong Kong's first A special purpose acquisition company (Special Purpose Acquisition Company, hereinafter referred to as "SPAC") has passed the listing hearing and is expected to be listed on March 22. A SPAC is a type of shell company that raises funds through an initial public offering (hereinafter referred to as "IPO") (the issue price is generally $10 per SPAC share), with the aim of raising funds within a preset period of time (usually two years) after listing. An operating company enters into a business combination. The SPAC itself has no business operations and has no assets other than the proceeds from the IPO and funds raised by the SPAC sponsor to pay for the expenses of the SPAC. And the M&A< between the SPAC and the target company /a>, known as De-SPAC.

The advantage of SPAC is mainly to shorten the time and cost of listing of enterprises. Shell companies without business are listed first, with low threshold, low cost, fast speed, and low requirements for investors. They can turn around through the acquisition of entity companies within two years, and through special funds Dedicated and with a money-back guarantee for failed mergers and acquisitions, it is suitable for small companies as a way to go public and is a financial convenience tool. But the SPAC model also has certain risks. That is, there are only two years for mergers and acquisitions. If the company cannot be acquired during the period, the SPAC will be dissolved and refunded. In addition, there are issues such as the need to prevent dilution of the shares of the target company under the equity incentive.

4. [Association of Interbank Dealers: The amount of interbank corporate credit bonds issued in February was 572.263 billion yuan, down 41% from the previous month] China Interbank Dealers The association released the business volume statistics of debt financing instruments in February 2022. In February 2022, 529 corporate credit bonds were issued and registered, with a total amount of 572.263 billion yuan, down 41.699% from the previous month. The issuance and registration amount in January 2022 is 981.569 billion yuan.

(IV) Environmental protection and safety

——not yet

Second, the middle view

(1) Industry supply and demand

1. [TBEA: 17.6 billion yuan to build a polysilicon project with an annual output of 200,000 tons] TBEA announced that it plans to invest 17.6 billion yuan to build a high-end electronic-grade polysilicon green low-carbon circular economy project with an annual output of 200,000 tons . The overall planning and construction of the project is based on 200,000 tons/year, which is divided into two phases of construction, and the construction scale of each phase is 100,000 tons/year.

2. [Photovoltaic backplane company Jolywood entered the field of polysilicon] On March 15, Suzhou Jolywood New Materials Co., Ltd. (hereinafter referred to as "Jolywood") and Taiyuan City, Shanxi Province, Gujiao The municipal government signed the "Strategic Cooperation and Investment Agreement" and planned to invest in a project with an annual output of 200,000 tons of industrial silicon and 100,000 tons of high-purity polysilicon in Gujiao City, further deepening the development of a 100 billion-level photovoltaic industry chain cluster in Shanxi Province. As of March 15, 2022, 664,300 tons of polysilicon production capacity has been completed and put into production nationwide, 1.035 million tons of production capacity under construction and pre-start work, 1.96 million tons of reserve and demonstration capacity, and a total of 3.66 million tons of three types of production capacity.

3. [New entrant in the silicone industry: Inner Mongolia Hengxing Chemical Co., Ltd.] China Fluorosilicon Association Announcement: New entrant in the silicone industry - Inner Mongolia Hengxing Chemical Co., Ltd. plans to build a production capacity of 600,000 tons of organic silicon monomer , the supporting metal silicon production capacity is 200,000 tons. At present, the first-phase 200,000-ton organic silicon monomer production line has been completed and put into operation; the second-phase plan will focus on the development and application research of high-performance functional silicone downstream materials silicone oil, silane coupling agent, and silicone resin; the third-phase plan Construction of 400,000 tons of organic silicon monomer and supporting 200,000 tons of metal silicon project.

4. [Qingdian Energy Group invests in the construction of a photovoltaic silicon-based demonstration industrial park in Hami, Xinjiang] According to media reports, Qingdian Energy Group, a foreign-funded enterprise, is building a photovoltaic silicon-based demonstration industrial park in Hami, Xinjiang. The overall plan of the project is: Produce 400,000 tons of industrial silicon, 200,000 tons of polysilicon, and 60GW of monocrystalline silicon pull rods and slices. The construction is expected to be completed in three phases within five years. The first phase of the 100,000-ton polysilicon and 10GW monocrystalline silicon pull rod slicing project is expected to be put into production in 2023. It is also understood that Qingdian Energy Group has completed the integration of 100,000 tons of industrial silicon production capacity in China.

(2) Technology and economy

——not yet

(III) Industry development trend

1. [LONGi shares signed a major investment agreement of 19.5 billion yuan]LONGi sharesAnnouncement: the company and OrdosThe Municipal People's Government and the Yijinhuoluo Banner People's Government signed the "Investment Cooperation Agreement" on March 12, 2022. >Ordos City Yijinhuoluo Banner Mengsu Economic Development The district invested in the construction of a 20GW monocrystalline silicon rod and slice project, a 30GW high-efficiency monocrystalline cell project and a 5GW high-efficiency photovoltaic module project to reach cooperation intentions.

2. [The photovoltaic module recycling industry has entered the eve of its launch] According to the media interview on photovoltaic module recycling Senior engineer of Institute of Electrical Engineering, Chinese Academy of Sciences, photovoltaic expert of China Green Supply Chain Alliance Lv Fang, secretary general of the committee. According to reports, the "Complete set of technology and equipment for recycling and processing crystalline silicon photovoltaic modules" project started in the 863 plan during the 12th Five-Year Plan period. It will be submitted to the industry in 2022. Combined with the "Implementation Plan for Accelerating the Promotion of Comprehensive Utilization of Industrial Resources" jointly issued by eight departments including the Ministry of Industry and Information Technology, it is clearly proposed to promote the research and development and industrial application of new solid waste comprehensive utilization technologies such as waste photovoltaic modules and wind power blades. Lu Fang believes that after 10 years of research, the photovoltaic module recycling industry has the conditions for its birth.

3. [Industrialization of silicon-based negative electrodes is approaching] Capacity is one of the key indicators to measure the performance of negative electrode materials. The larger the capacity, the better the energy density of the battery. The silicon-based anode is regarded as the next-generation lithium battery anode material. With the theoretical specific capacity of 4200mAh/g, the performance far exceeds the theoretical specific capacity of the traditional graphite anode of 372mAh/g. With Tesla self-built 4680 battery production line for small-scale mass production, and overseas manufacturers such as Panasonic and LG gradually increase the output of 4680 battery, which is a silicon-based battery The negative electrode industrialization has created conditions. CICCResearch report predicts that 2022 is expected to be the first year of industrialization of silicon-based anodes. It is estimated that the global demand for silicon-based anodes is expected to reach 200,000 tons in 2025, of which the penetration rate of consumer batteries is expected to reach 50%, corresponding to the demand for silicon-based anodes of about 70,000 tons; the penetration rates in cylindrical and square power batteries will reach 35% and 20%, respectively. , corresponding to about 130,000 tons of silicon-based anode demand. At present, there are Beterui, Shanshan, Pour Tailai, Xiangfenghua, Shi Dashenghua, Silicon Technology and other announcements to invest in silicon-based anode production lines. Among them, China's first leading company, Betray, has built a production capacity of 3,000 tons of silicon-based anodes, and plans to build a production capacity of 40,000 tons of silicon-based anodes in Guangming District, Shenzhen (the first phase of 15,000 tons); Shi Dashenghua< /span>The first phase of 1,000 tons of silicon-based anodes has entered the trial production stage, and the second phase is planned to be a 20,000-ton silicon-based anode production line, which is expected to be completed and put into production in December 2023; Silicon TechnologyThe 10,000 tons/year silicon carbon anode material invested in the construction has been supplied in small batches; Guoxuan Hi-Tech under construction 5000 ton/year silicon-based anode material production line, in addition Shanshan Co., Ltd. has achieved mass supply, Puracom< /a> and Xiangfenghua Si-based anodes already have the basic conditions for industrialization

Silicon-based negative electrodes have problems such as easy volume expansion of silicon, poor conductivity, and large first-time charge-discharge loss. The current silicon-based negative electrodes are doped with silicon and graphite for composite use. Therefore, silicon-based negative electrodes are specifically divided into silicon carbon negative electrodes. , silicon oxide carbon negative electrode and other different types. At present, the proportion of silicon doping in mass-produced products is mostly below 10%, and there is a trend of gradual increase.

The current market price of silicon-based anodes is 200,000-300,000 yuan / ton, gross Interest rate up to 50%. Compared with traditional anode materials, it lacks cost-effective advantages, which is not conducive to rapid penetration in mainstream models.

4. [Silicon Industry Branch Warning: Silicon Materials Investment Enterprises Comprehensive Investigation, not only pursuing immediate interests] At present, the price of silicon material continues to run at a high level, and the industry is attributed to "increase in" The amount was less than expected". Since the end of 2021, although silicon material manufacturers have continuously released new production capacity, due to the superposition of factors such as the accelerated expansion of silicon wafer enterprises and the increase in operating rate, the supply of silicon materials cannot keep up with the incremental pace of silicon wafers, resulting in The supply gap has appeared, which has caused a period of tension in the silicon material. However, according to the statistics of the Silicon Industry Branch, as of now, there have been 16 new companies that have announced new or proposed polysilicon projects (more than the current number of 13 companies in production), with a total planned production capacity of more than 1.7 million tons per year. Expansion of production capacity of the production enterprises, the total increase will reach about 3.5 million tons/year, the terminal demand in 2025 is optimistically expected to be 400GW, and the demand for silicon materials is about 1.5 million tons, which is about 900,000 tons more than the demand in 2021. It can be seen that the expansion The increase in production capacity is significantly greater than the increase in demand. Jolywood and TBEA announced to build 100,000 tons and 200,000 tons of polysilicon projects successively, causing an uproar in the industry!

The Silicon Industry Branch further pointed out that due to the small elasticity coefficient of polysilicon production capacity and the high requirements for safety and environmental protection management, once the supply exceeds demand, it is very likely to have an extreme situation of inversion of cost and price for a long time, and then enter the industry again due to insufficient capital investment, The vicious circle of serious mismatch between supply and demand intensifies disorderly competition in the market.

5. [Qinghai's shared energy storage and additional new energy generation broke the 100 million kWh mark for the first time] From March 11, China's State Grid Qinghai Electric Power Company learned that as of the end of February, Qinghai Power Grid had increased new energy through shared energy storage. The electricity reached 101.27 million kWh, indicating that shared energy storage has significant support for the additional generation of new energy.

6. [Sanyou Chemical: Plans to spin off the silicon company to be listed on the domestic stock exchange] Sanyou Chemical announced that in order to expand and strengthen the new organosilicon material industry, it plans to spin off the silicon company to be listed on the domestic stock exchange. Silicon Industry Company's organic silicon monomer production capacity is 200,000 tons/year, and the monomer production capacity under construction is 200,000 tons. After reaching production, the annual production capacity will reach 400,000 tons/year. Downstream products have gradually formed six categories with nearly 100 varieties, covering DMC, dimethyldichlorosilane hydrolyzate, 107 glue, 110 glue, high hydrogen-containing silicone oil, high-boiling silicone oil, electrical parts packaging glue, etc., which are widely used in aerospace Aviation, medical and health, construction, daily chemical and other important fields.

Third, microscopic articles

(1) Process and equipment case

——not yet

(II) Operation and Management Cases

——not yet