HTSC·2025-03-30 13:21Investment Rating - The industry investment rating is "Overweight" [5] Core Views - The report indicates a strong demand for lithium batteries driven by the release of new vehicles and the implementation of trade-in policies, leading to a 2.0% month-on-month increase in battery production to 108.1 GWh in April [1] - The report highlights the positive outlook for the lithium battery supply chain, with expectations of continued improvement in supply-demand dynamics and strong performance from leading companies in battery, structural components, and anode materials [4] - The report notes that the domestic energy storage market remains robust, with a projected 18% year-on-year increase in large-scale energy storage installations in 2025, despite concerns over policy changes [3] Summary by Sections Lithium Battery Production - In April, battery production reached 108.1 GWh, a month-on-month increase of 2.0%, while cathode production decreased by 5.2% to 110,000 tons, and anode production increased by 3.1% to 117,000 tons [1] - The strong production data is attributed to the concentrated release of new vehicles and clarified trade-in policies across regions, alongside rapid growth in global energy storage demand [1] New Energy Vehicles - Domestic sales of new energy vehicles reached 1 million units in March 2025, a year-on-year increase of 41.0%, with a cumulative sales increase of 37.7% in the first quarter [2] - In Europe, despite a relaxation of carbon emission policies, the long-term trend towards electrification remains unchanged, with a 17.9% year-on-year increase in new energy vehicle sales in February [2] Energy Storage Market - The domestic large-scale energy storage market continues to thrive, with expectations of an 18% year-on-year increase in installations for 2025 [3] - In the U.S., energy storage installations surged by 433% year-on-year in January-February 2025, indicating a sustained demand despite potential tariff impacts [3] Supply-Demand Dynamics - The report anticipates a gradual improvement in supply-demand dynamics across the lithium battery materials sector, with price increases observed since late 2024 [4] - Leading companies in the lithium battery supply chain, such as CATL, Keda, Fulian Precision, and Shanta Technology, are recommended for investment due to their favorable market positions [4][8]