Xin Lang Cai Jing·2025-12-25 12:40Core Viewpoint - The battery supply chain is experiencing a surge in new long-term contracts and expansion activities, indicating strong demand and growth potential in the industry [1][5]. Group 1: New Long-term Contracts - Haike Xinyuan announced a strategic cooperation agreement with Farinlight to supply 270,000 tons of electrolyte solvents and additives from January 1, 2026, to December 31, 2028 [1][6]. - Contemporary Amperex Technology Co., Ltd. (CATL) signed a five-year contract with South Korean electrolyte manufacturer Enchem for a total of 350,000 tons, valued at approximately 7.268 billion RMB [1][6]. - Other companies, including Shengxin Lithium Energy and Zhongchuang Innovation, have also secured significant contracts, with Shengxin's order for 200,000 tons of lithium salt potentially exceeding 20 billion RMB due to rising lithium carbonate prices [1][6]. Group 2: Expansion Activities - At least 10 companies have announced capacity expansion plans in December, covering various segments such as energy storage systems, battery manufacturing, and materials [2][8]. - Haibo Shichuang plans to invest 2 billion RMB in a smart green energy storage factory project [3][8]. - Companies like Yicheng Lithium Energy and Pioneering Technology are also investing heavily in new projects to meet the growing demand for energy storage solutions [3][8]. Group 3: Market Demand and Growth Projections - The domestic new energy storage bidding scale exceeded 400 GWh from January to November 2025, a 75% increase year-on-year, indicating robust market demand [4][9]. - Global energy storage demand is expected to grow significantly, with projections of a 60% increase in global installed capacity to over 330 GWh by 2025, driven by rising needs in emerging markets and data centers [4][9]. - Analysts anticipate that the domestic energy storage market will see a 35% increase in demand by 2025, reaching over 150 GWh, and a 60% increase by 2026, reaching around 250 GWh [4][9]. Group 4: Industry Outlook - The lithium battery supply chain is transitioning from a period of excess supply to a proactive replenishment phase, with expectations of a recovery in 2026 driven by strong end-user demand from AI and energy storage sectors [5][10]. - The industry is shifting from price wars to price stabilization, with profits moving towards upstream materials with high barriers to entry, leading to a potential increase in both volume and profit across the sector [5][10].