Zhi Tong Cai Jing·2024-02-16 03:02Core Viewpoint - Lithium battery stocks are experiencing a significant rise, indicating positive market sentiment towards the lithium sector [1] Industry Summary - In the first quarter, the lithium battery industry is typically in a demand lull, with East Wu Securities estimating that the lithium carbonate capacity utilization rate will be at its annual low in Q1 2024 [1] - It is anticipated that lithium prices may bottom out in the first half of the year, with a projected demand growth of over 20% for 2025 [1] - The steep cost curve of lithium resources suggests that new capacity releases may fall short of expectations when lithium carbonate prices are low, potentially stabilizing prices at the bottom [1] - Shanxi Securities notes that downstream demand in the lithium battery supply chain remains stable, while upstream supply is abundant, leading to ongoing industry dynamics [1] - As the industry approaches a bottom, continuous capacity clearance, and high growth in downstream demand, the fundamentals of the lithium battery industry are expected to improve further [1]