Group 1 - The new L80 pure electric five-seater SUV features a larger second row compared to the L90 and a flatter trunk [1] - The L60 and L90 will undergo minor updates this year, with the L90 also introducing a laser radar version [1] - The company plans to launch three models simultaneously this year and aims to expand into the market below 200,000 yuan, with more entry-level products in development [1]

Core Viewpoint - The company is focusing its resources on the new generation L9 model, with sales forecasts exceeding 100,000 units [1] Group 1: Product Development - The new L9 features a completely redesigned exterior, larger dimensions, upgraded chassis, and a battery capacity exceeding 70 kWh, offering a pure electric range of over 400 kilometers [1] - The self-developed M100 chip will be integrated into the vehicle, with an upgraded cockpit chip (8797) and a larger front display screen [2] - The L9's battery capacity is above 70 kWh, while the L6 model has a 45 kWh battery, indicating a more conservative approach compared to competitors who are opting for 80 kWh batteries [2] Group 2: Market Strategy and Sales - The company's core executives indicated that they aim to regain their leading position in range-extended vehicles by 2026, acknowledging that their market share will not return to the 40%+ levels of 2022 and 2023 [3] - The company is targeting a sales growth plan of approximately 40% for 2026, equating to around 550,000 units, compared to about 410,000 units last year [3] - Adjustments in the sales system are underway, including higher professional and sales requirements for frontline managers, with underperforming individuals being reassigned [3] - Inefficient retail locations are being closed, particularly those established during previous expansion phases that no longer meet the company's efficiency and return on investment standards [3]

Group 1 - Germany plans to reintroduce electric vehicle subsidies with a total budget of €3 billion (approximately 24 billion RMB) by 2026, extending tax reductions for new electric vehicles until 2035 [1] - The subsidy for each electric vehicle will range from €1,500 to €6,000, targeting low to middle-income families with taxable income ≤ €80,000, and applicable to vehicles priced under €45,000 [1] - The expected subsidy will support the purchase of 1 million vehicles, averaging 250,000 vehicles per year, which will account for 29.5% of the projected new energy vehicle sales in 2025 [1] Group 2 - The decline in electric vehicle sales in Germany is anticipated due to the reduction of subsidies, with sales dropping by 14.1% in 2023 and 18.2% in 2024 [2] - In 2025, electric vehicle sales are expected to rebound to 847,000 units, representing a 48.3% year-on-year increase, with a penetration rate of 26.8%, up by 8.6 percentage points [2] - The overall new energy vehicle sales in Europe are projected to reach 3.9 million units in 2025, a 32.7% increase year-on-year, with a penetration rate of 22.2%, up by 5 percentage points [2] Group 3 - The reintroduction of subsidies in Germany is seen as a significant benefit for domestic automakers looking to expand into Europe, particularly for companies like BYD and SAIC that produce vehicles priced below €45,000 [3]

Market Analysis - Battery production has shown limited fluctuations this week, with the export tax rebate policy impacting energy storage and overseas ternary battery cell customers significantly. However, energy storage production lines are nearly at full capacity, leading to limited incremental production. The expectation is to maximize output and minimize holiday disruptions, while raw material prices continue to rise, resulting in increased prices for battery cells [1] New Energy Vehicles - According to data from the Passenger Car Association, from January 1 to November 11, 2026, retail sales in the passenger car market reached 328,000 units, a year-on-year decrease of 32%. The new energy vehicle market saw retail sales of 117,000 units, down 38% year-on-year and down 67% compared to the previous month, with a penetration rate of 35.5% for new energy vehicles. In 2025, China's new energy vehicle production and sales reached 16.626 million and 16.49 million units, respectively, representing year-on-year growth of 29% and 28.2%. New energy vehicles accounted for 47.9% of total new car sales, with domestic sales of 13.875 million units, up 19.8% year-on-year, and domestic sales of new energy passenger vehicles at 13.005 million units, up 17.7% year-on-year. New energy commercial vehicle sales reached 871,000 units, up 63.7% year-on-year. Exports of new energy vehicles totaled 2.615 million units, doubling year-on-year, with passenger vehicle exports at 2.532 million units, also doubling year-on-year, and commercial vehicle exports at 83,000 units, up 86.8% year-on-year [2] Energy Storage - This week, domestic energy storage cell prices have increased. Most energy storage cell manufacturers, except for a leading company, have raised their product prices. Following the price increase, the willingness of downstream customers to place orders has decreased, leading to a wait-and-see attitude. The market is currently in a stocking phase. Recent integrated pricing has not seen significant increases, and Company C maintains a high operating rate. The demand for data centers in the U.S. is expected to be between 20-30 GWh this year, indicating a good demand for energy storage. In the ten days leading up to a recent bidding event, 30 GWh was tendered, reflecting a very strong market outlook for the first quarter domestically [3] News (Including Rumors) - CATL holds a domestic market share of approximately 46% and an overseas market share of about 43%. It is expected that after the adjustment of the export tax rebate rate, CATL's overseas market share could increase by 1-2%. The commercial prospects for sodium batteries in recent years have been generally poor, and CATL has not engaged in large-scale procurement of related materials, primarily due to the economic inefficiency and lower energy density compared to lithium batteries. According to the milestone planning for solid-state battery R&D projects, clear equipment procurement demands and bidding actions are not expected until around the first half of 2027 [4]

Core Viewpoint - Xiaopeng X9 Super Range Extender is positioned as the first MPV for young families, appealing to a diverse demographic including younger generations and women [1][3]. Group 1: Product Features and Market Positioning - Xiaopeng X9 Super Range Extender features six core product strengths: starship design, active rear-wheel steering, assisted driving, three rows of electric folding seats, 1602 km ultra-long range, and ice and snow stability system, setting a new benchmark for high-end MPV travel experiences [3]. - The vehicle has successfully penetrated traditional MPV user demographics, attracting users across different ages, regions, and interests, including 90s and 00s families, female users, and tech enthusiasts [3][5]. Group 2: Sales Performance and Market Impact - In December 2025, Xiaopeng X9 delivered 5,424 units, achieving a year-on-year growth rate of 289.1%, making it a standout performer in the MPV market [3]. - Nearly 80% of Xiaopeng X9 deliveries were to individual users, surpassing competitors by approximately 35 percentage points, and it became the top-selling high-end MPV for individual users [3][5]. Group 3: Demographics of Users - Among Xiaopeng X9 buyers, 57.2% are from the 90s generation and 13.7% from the 00s generation, indicating a significant youth trend as the average age of MPV users is 10 years older [7]. - Female ownership stands at 22%, highlighting the vehicle's appeal among family users, with a focus on stylish design and technology [9]. Group 4: User Preferences and Customization - 36.8% of users opted for personalized modifications like window tinting after purchase, reflecting a blend of family-oriented and individualistic vehicle usage [9].

Domestic Overview - In December, the production of domestic power and other batteries reached 201.7 GWh, representing a year-on-year increase of 62.1% and a month-on-month increase of 14.4%. The production of ternary and lithium iron phosphate batteries was 40.6 GWh and 160.5 GWh, accounting for 20.1% and 79.5% respectively [1] - The installed capacity of domestic power batteries in December was 98.1 GWh, showing a year-on-year increase of 35.1% and a month-on-month increase of 4.9%. The installed capacity for ternary and lithium iron phosphate batteries was 18.2 GWh and 79.8 GWh, making up 18.6% and 81.3% respectively [2] - The top three companies in terms of installed capacity for domestic power batteries in December were CATL with 45.71 GWh (46.6%), BYD with 17.63 GWh (18.0%), and Zhongxin Innovation with 7 GWh (7.1%) [3] Annual Overview - From January to December, the cumulative production of domestic power and other batteries reached 1755.6 GWh, a year-on-year increase of 60.1%. The cumulative production of ternary and lithium iron phosphate batteries was 347.6 GWh and 1405.1 GWh, accounting for 19.8% and 80.0% respectively [4] - The cumulative installed capacity of domestic power batteries from January to December was 769.7 GWh, reflecting a year-on-year increase of 40.4%. The cumulative installed capacity for ternary and lithium iron phosphate batteries was 144.1 GWh and 625.3 GWh, representing 18.7% and 81.2% respectively [4] - The top three companies for cumulative installed capacity of domestic power batteries from January to December were CATL with 333.57 GWh (43.3%), BYD with 165.77 GWh (21.5%), and Zhongxin Innovation with 53.61 GWh (7.0%) [4] Global Overview - In November, the global installed capacity of power batteries was 112.5 GWh, showing a year-on-year increase of 13.8% but a month-on-month decrease of 7.6% [5] - The top three companies in global installed capacity for November were CATL with 44.8 GWh (39.8%), BYD with 17.3 GWh (15.4%), and LG with 10.4 GWh (9.2%) [6] - From January to November, the cumulative global installed capacity of power batteries reached 1046.0 GWh, a year-on-year increase of 32.6% [7] - The top three companies for cumulative global installed capacity from January to November were CATL with 400.0 GWh (38.2%), BYD with 175.2 GWh (16.7%), and LG with 96.9 GWh (9.3%) [8]

Core Viewpoint - The article discusses the current state of negotiations and pricing for key materials in the lithium battery industry, highlighting the shift from traditional long-term contracts to more flexible, order-based pricing due to market volatility [2] Group 1: Progress and Pricing of Key Materials - Negotiations for most materials for 2026 are not yet locked, with discussions expected to intensify around the Chinese New Year. Currently, only the price for lithium hexafluorophosphate is confirmed at 150,000 yuan/ton [3][5] - Major suppliers include Tianqi Lithium, Tianji, and others, with a general price increase demand of about 10%-15% or higher from suppliers across the board [5] - The price of lithium hexafluorophosphate has risen to approximately 160,000 yuan/ton, while electrolyte prices have surged from about 19,000 yuan/ton to around 60,000 yuan/ton [5] Group 2: Changes in Procurement Models - The traditional "annual bidding" model is no longer viable, with most transactions shifting to spot or short-term agreements due to frequent price fluctuations [5] - The procurement cycle is now aligned with the Chinese New Year, with current production still using prices from the previous cycle [6] Group 3: CATL's Operations and Supply Chain - CATL has a strong ability to absorb and pass on cost increases due to its strategic investments in key material companies and production efficiency improvements [6] - The company has not implemented a blanket price increase for major clients but is focusing on maintaining market share through a responsive pricing mechanism [5][6] Group 4: Product Pricing and Market Outlook - The production plan for Q1 2026 is approximately 229 GWh, slightly down from 249 GWh in Q4 2025, with expectations of a potential recovery in February [6] - The expected revenue per watt-hour is estimated at around 0.6 yuan, with material prices anticipated to rise throughout the year, provided demand remains stable [6][7] - CATL's cost absorption capability is enhanced through production efficiency improvements, allowing it to mitigate the impact of rising raw material costs [7]

Overall Situation - In December 2025, China's passenger car terminal sales reached 2.278 million units, a month-on-month increase of 13.6% [1] - New energy passenger car sales totaled 1.334 million units in November 2025, with a month-on-month growth of 9.0% [1] - Breakdown of new energy vehicle sales: pure electric vehicles sold 781,000 units (up 0.9%), plug-in hybrids sold 412,000 units (up 23%), and range-extended vehicles sold 142,000 units (up 24.6%) [1] - The penetration rate of new energy vehicles in the passenger car market reached 57.4% in December, slightly down from 60.1% in the previous month [1] - Total new energy passenger car sales for 2025 are projected at 12.338 million units, a 15% increase from 10.744 million units in 2024 [1] - The annual penetration rate for new energy vehicles in 2025 is expected to be 53.4%, marking the first time it exceeds 50% [1] Automotive Market Overview - The expiration of the vehicle purchase tax exemption has led to outstanding performance in new energy terminal retail, achieving a historical high [3] - Despite the expected year-end buying spree due to the tax exemption, many provinces have exhausted their budgets for trade-in policies, creating a counteracting effect on purchase incentives [3] Brand Rankings - The top-selling pure electric models in December 2025 include Tesla Model Y (500,000 units), Star Wish (400,000 units), and Xiaomi YU7 (390,000 units) [6][7] - The top-selling plug-in hybrid models include BYD Qin PLUS (360,000 units), Titanium 7 (310,000 units), and BYD Song Pro (170,000 units) [8][9] - The top-selling range-extended models include Aion M7 (123,000 units), Ideal L6 (93,000 units), and Aion M8 (82,000 units) [10]

Core Insights - The article highlights advancements in battery technology, including the introduction of new charging technologies and battery products, which are expected to enhance the performance and efficiency of electric vehicles and hybrid electric vehicles. Group 1: New Technologies and Products - The 3.5 generation ion oscillation pulse charging technology reduces full charge time by 25% compared to the second generation, with no additional cost increase, and is planned for mass production in Q3 2026 [1] - The large-capacity HEV power battery has a cell capacity of 10.8Ah, the largest globally, supporting 62C pulse discharge and 47C pulse charging, with a cycle life exceeding 40,000 times and energy coverage from 3.6 to 7.3kWh, with the first product set to launch in Q3 2026 [1] - Five new battery products have been announced, including a clear semi-solid technology route with a dedicated production line of 2.3GWh, and the first generation of 270Wh/kg cells entering sample production, with mass production ramp-up expected in 2026 [1][3] Group 2: Financial Performance and Market Position - Honeycomb Energy announced its first quarterly profit is expected in Q4 2025, marking a significant operational turning point [1] - The article notes that the energy storage market is growing faster than the power market, indicating a shift in market dynamics [9]

Group 1: 2026 Product Planning - In the first half of 2026, the company plans to launch range-extended electric vehicle (REEV) versions for most existing models, including a new SUV based on the X9 platform [1] - In the second half of 2026, the company will introduce a new battery electric vehicle (BEV), the MONA compact SUV, and a facelift of the existing MONA M03 sedan [1] Group 2: Product Strategy - All REEV models are planned to adopt large battery solutions, aiming for a balanced mix of BEV and REEV products [2] Group 3: Overseas Expansion - The company targets significant growth in international sales, with a goal for overseas market revenue to exceed 20% of total revenue by 2026 [3] - Localized production in Austria is expected to shorten delivery times and reduce tax costs, further improving profit margins [3]