Energy Insider: Solar Giant Longi Says U.S. Customs Detained Products
In today’s Caixin energy news wrap: Global race for secure access to key battery materials heats up; authorities move to further ease supply crunch of coal for power generation.
Chinese solar panel giant Longi says U.S customs detained products
China's solar giant Longi Green Energy Technology Co. Ltd. said 40.31 megawatts of its photovoltaic materials exported to U.S. were seized by U.S. Customs and Border Protection starting Oct. 28. The products accounted for 1.59% of the company's yearly sales in 2020. Longi said it is able to prove that the detained modules used silicon materials that meet U.S. government requirements. The detention has no major impact on Longi’s current operations, according to a statement. Longi joins JinkoSolar Holding Co. Ltd., Canadian Solar Inc. and Trina Solar Co. on a list of solar manufacturers tied to Xinjiang-based Hoshine Silicon Industry Co., which is sanctioned by the U.S.
Chengxin Lithium to acquire 51% stake in African lithium producer
Chengxin Lithium Group Co. Ltd., a China-based lithium battery material producer, said one of its units agreed to pay $76.5 million for a controlling stake in Max Mind Investment Ltd., which owns the Max Mind Zimbabwe lithium business. Max Mind Zimbabwe owns mining rights to 40 rare metal mining blocks in the African country.
Bidding battle for Canadian lithium miner drags out
Canada’s Lithium Americas Corp. made a $400 million offer for Millennial Lithium Corp. Monday after Chinese rival CATL outbid Ganfeng Lithium by offering $297 million in September to acquire the Canadian lithium miner. Bidding wars for battery metals miners intensified worldwide amid surging battery demand as global automakers shift to electric vehicles.
Ganfeng Lithium signs three-year supply contract with Tesla
The world's top lithium company Ganfeng Lithium Co. won a deal to supply Tesla Inc. with lithium products for three years, enabling the EV maker to lock in critical raw materials as prices of battery metals surge. Raw materials have always been the bottleneck for mass EV production. This is another move for Tesla to get involved in raw materials and tighten control over its supply chain.
More coal producers cap prices to ease power shortage
In a recent meeting of the China Coal Transportation and Distribution Association, more than 10 major coal companies announced a cap price of 1,000 yuan ($156) per ton for 5,500-NAR grade coal at the pit-head. Since late October, coal prices plunged after the country's top economic planner stepped in. As production picks up, China’s coal shortage is easing.
Local governments inspect coal storage violations to stabilize market
China's main coal-producing provinces Shanxi, Shaanxi and Inner Mongolia recently strengthened supervision over coal storage facilities through various measures after the NDRC vowed to clean up hoarding that pushes up coal prices. Local governments shut down illegal storage sites without licenses.
Railway transport of coal rose 25% in October
China Railway Co. Ltd. said the amount of power coal transported by the country’s railway system rose 25% year-on-year to 122 million tons in October. By the end of October, 363 power plants that receive coal deliveries directly from the railway operator increased their stockpiles to 19.1 days of consumption, compared with 14 days a months ago.
Power crunch is easing in Northeast China
China’s northeastern Liaoning province, the worst-hit region in the power crunch, said it recovered from the electricity shortage. There was no power rationing for 10 consecutive days as generating capacity reached 34 million kilowatt-hours (kWh), enough to cover peak demand of 31.13 million kWh.
Contact editors Han Wei (firstname.lastname@example.org) and Bob Simison (email@example.com)
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