Investment Rating - The industry investment rating is "Overweight" [2][51]. Core Insights - The lithium battery index has shown strong performance, with a 4.92% increase over the past two weeks, outperforming the CSI 300 index by 1.45 percentage points. Year-to-date, the lithium battery index has risen by 11.94%, exceeding the CSI 300 index by 6.49 percentage points [4][14]. - Recent policies aimed at reducing internal competition have led to a rise in lithium carbonate prices, with the average price reaching 70,500 CNY per ton, an increase of 11.20% over the past two weeks. However, high inventory levels of lithium carbonate may pressure prices in the short term [6][27]. - The solid-state battery sector is experiencing rapid advancements, with several companies reporting progress in this area, indicating a structural demand increase for materials and equipment in the supply chain [46]. Summary by Sections Market Review - As of July 24, 2025, the lithium battery index has increased by 4.92% in the last two weeks, outperforming the CSI 300 index by 1.45 percentage points. The index has risen by 10.43% this month and 11.94% year-to-date [4][14]. Price Changes in the Lithium Battery Supply Chain - Lithium carbonate prices have increased by 11.20% to 70,500 CNY per ton, while lithium hydroxide prices rose by 7.29% to 67,700 CNY per ton [6][27]. - Prices for cathode materials such as lithium iron phosphate have increased by 7.22% to 32,700 CNY per ton, while NCM523, NCM622, and NCM811 have seen slight declines [29][25]. - The average price of electrolytes has decreased, with lithium hexafluorophosphate dropping by 1.98% to 49,500 CNY per ton [33][25]. Industry News - The National Development and Reform Commission has issued guidelines to regulate pricing behaviors, aiming to curb "involution" competition in the market [43]. - The new energy vehicle market has shown a retail sales increase of 23% year-on-year, with a total of 537,000 units sold from July 1-20, 2025 [46]. - Companies like CATL and EVE Energy are highlighted for their advancements in solid-state battery technology, with CATL expected to begin small-scale production of solid-state batteries by 2027 [48][46]. Company Announcements - CATL is projected to achieve a net profit of 50.745 billion CNY in 2024, with a 15.01% year-on-year growth [48]. - EVE Energy has secured a supplier agreement with XPeng Motors, indicating potential market expansion in the low-altitude economy sector [48]. - Enjie Co., Ltd. is advancing in the semi-solid battery separator business, with production capabilities expected to ramp up [48].