CATL(SZ:300750) Sou Hu Cai Jing·2025-08-11 02:28Core Viewpoint - The battery sector, particularly lithium mining and solid-state battery technology, is experiencing significant market movements due to production halts and breakthroughs in technology, leading to increased investor interest and potential price hikes in lithium products [1][3][4]. Market Reaction - On August 11, the battery sector rebounded sharply, with lithium mining concepts leading the market, and lithium carbonate futures hitting the limit up, with the main contract (2511) rising by 8% [1]. - The representative battery ETF (561910) saw a 1.74% increase, with a net inflow of 88.94 million yuan over the past 10 days and 140 million yuan over the past 20 days [1][2]. Production and Supply Dynamics - The suspension of operations at the Ningde Times lithium mine is expected to impact monthly production by over 10,000 tons, contributing to a tighter supply-demand balance in the upcoming months [3]. - SMM reported that lithium carbonate production in July was 81,500 tons, and if the production halts materialize, the annual surplus for 2025 is revised down from 171,000 tons to approximately 140,000 tons [3]. Solid-State Battery Developments - Recent breakthroughs in solid-state battery technology, particularly by the China National Nuclear Corporation and Tsinghua University, are expected to accelerate the industry's development [3][5]. - Analysts believe that solid-state batteries represent a significant direction for the lithium battery industry, with increasing investments and technological advancements expected to drive growth [5]. ETF and Valuation Insights - The battery ETF (561910) tracks the CS Battery Index, with nearly 40% of its holdings in solid-state battery concepts, covering the entire battery industry chain [6]. - The CS Battery Index has a PE valuation of 24.77 times, indicating significant undervaluation compared to historical levels [7]. Performance of Key Stocks - Key stocks in the battery sector, such as Ningde Times and Yiyuan Lithium Energy, have shown strong performance, with Ningde Times reporting a 33% increase in net profit in its mid-year report [8].