Sky Horizon Co., Ltd.: The shipment volume of lithium hexafluorophosphate in Q1 next year will decrease month-on-month, but the extent will not be too large.

Jin10 data reported on October 31, Tianji Co., Ltd. stated at the earnings briefing that the shipment of lithium hexafluorophosphate in Q3 was 12,000 tons, with sales in October at 4,200 tons. For November and December, the plan is around 4,000 tons, and currently, the inventory is very low, with a production rate of 3,800 tons per month. In January next year, based on downstream guidance, it is highly likely that Q1 will not be a low season. There will be a month-on-month decrease, but the magnitude will not be too large, as our inventory is very low, allowing for appropriate stockpiling. Currently, the scattered orders for lithium hexafluorophosphate have reached 110,000, and the price rise will continue into November and December. Looking at next year's demand side, we have received optimistic demand from battery cell manufacturers, with some predicting market demand to reach 2.5T. According to this estimate, the demand for lithium hexafluorophosphate will exceed 300,000 tons, while the existing supply capacity is around 350,000 to 360,000 tons. With the additional production capacity expected next year, it will be around 380,000 tons. Considering the insufficient operating rates of second and third-tier plants, and that first-tier plants are at full capacity, along with issues regarding product qualification rates, next year will still be relatively tight. Price increases can be stabilized and sustained, but we believe a moderate increase would be better.