Core Viewpoint - The report from Dongwu Securities indicates that CATL's performance in Q2 2025 slightly exceeded expectations, with an increase in net profit margin, leading to an upgraded target price of 440.0 CNY and a "buy" rating for the stock [1]. Financial Performance - In H1 2025, CATL achieved revenue of 178.9 billion CNY, a year-on-year increase of 7%, and a net profit of 30.5 billion CNY, up 33% year-on-year. The adjusted net profit was 27.2 billion CNY, reflecting a 36% increase year-on-year. In Q2 alone, revenue reached 94.2 billion CNY, with a quarter-on-quarter increase of 8% and a year-on-year increase of 11% [2]. - The gross profit margin for H1 2025 was 25.6%, with a net profit margin of 17.5%, showing a quarter-on-quarter increase of 3 percentage points [2]. Production and Sales - In Q2 2025, CATL's battery production reached nearly 150 GWh, with a capacity utilization rate of approximately 90%. For H1 2025, the total production was 310 GWh, a 47% increase year-on-year, with an expected shipment volume of 270 GWh, up 32% year-on-year [3]. - The company anticipates a total shipment volume of 650 GWh for the year, representing a growth of over 35%, with energy storage expected to contribute 140-150 GWh, marking a growth of over 50% [3]. Pricing and Profitability - In H1 2025, revenue from the power battery segment was 131.6 billion CNY, a 17% increase year-on-year, while the average price per watt-hour was 0.69 CNY, down 13% year-on-year. The gross margin for this segment was 22.4% [4]. - The energy storage segment generated 28.4 billion CNY in revenue, a slight decline of 1% year-on-year, with an average price of 0.59 CNY per watt-hour, down 20% year-on-year [4]. Other Business Segments - Revenue from battery material recycling was 7.9 billion CNY, down 45% year-on-year, but the gross margin improved to 26%, up 18 percentage points year-on-year [4]. - The mining resources segment reported revenue of 3.4 billion CNY, a 28% increase year-on-year, with a gross margin of 9% [4]. Exchange Gains and Inventory - In Q2, CATL recorded an estimated exchange gain of 1.5 billion CNY, benefiting from the appreciation of the Euro. The company also reported investment income of 1.5 billion CNY, a 22% increase quarter-on-quarter [5]. - As of the end of Q2, inventory increased to 72.3 billion CNY, up 21% from the beginning of the year, primarily due to an increase in inventory of 11.2 billion CNY [5]. Profit Forecast and Investment Rating - The company maintains profit forecasts of 66.1 billion CNY, 80.2 billion CNY, and 96.6 billion CNY for 2025-2027, with expected growth rates of 30%, 21%, and 20% respectively. The target price of 440 CNY corresponds to a PE ratio of 25 for 2025 [5].

Report Information - Report Title: Carbonate Lithium Futures Daily Report [1] - Date: July 30, 2025 [2] - Researcher: Zhang Ping, Yu Feifei, Peng Jinglin [3] Industry Investment Rating - Not provided Core Viewpoints - The carbonate lithium futures continued to decline, with the main contract hitting a low of 68,600 during the session. After the first trading session, there was an obvious rebound in the anti - involution theme, and the decline of carbonate lithium narrowed. The spot market was resistant to decline, with the price of electric carbon dropping by 750 to 73,150. The spot was at a premium to the futures, and upstream lithium salt enterprises still showed strong price - holding willingness. There was a significant divergence in the psychological price expectations between upstream and downstream enterprises. The decline of Australian ore was greater than that of spot electric carbon, while the price of lithium mica ore was resistant to decline. The production profit of salt plants using purchased lithium spodumene expanded, while the production loss of salt plants using purchased lithium mica widened. The supply of carbonate lithium was expected to remain at a high level in the short term, and the fundamentals were difficult to support the price. The futures were expected to continue to hype the anti - involution logic, and the short - term support level of the futures was around 68,000 [11]. Section Summaries 1. Market Review and Operation Suggestions - Carbonate lithium futures dropped, and the decline narrowed after a rebound. The spot market was more resistant to decline, with the electric carbon price dropping by 750 to 73,150. Upstream enterprises had a strong price - holding intention, with a psychological expectation price range of 73,000 - 74,000 yuan, while downstream enterprises preferred to purchase through the futures premium and discount point - price model. Australian ore prices dropped by 65 to 780 US dollars per ton, expanding the production profit of spodumene - using salt plants to 2,489 yuan per ton. High - grade lithium mica prices dropped by 30 to 1,775 yuan per ton, widening the production loss of lithium - mica - using salt plants to 6,968 yuan per ton. The production volume of carbonate lithium from spodumene may further increase, while the production volume from lithium mica depends on the reduction and shutdown of relevant mines in Jiangxi. The short - term supply is expected to remain high, and the futures may continue to hype the anti - involution logic, with short - term support at around 68,000 [11]. 2. Industry News - A study by the University of Hong Kong found that aluminum impurities in the lithium - ion battery recycling process can form super - stable aluminum - oxygen bonds in the cathode crystals, trapping key metals and reducing their leachability, which challenges traditional recycling practices and emphasizes the need to redesign specific solvent processes [14]. - Two major new - energy companies achieved a breakthrough in recycling batteries by producing battery - grade lithium hydroxide from waste electric vehicle batteries. Their innovative process can extract lithium from mixed NMC and LFP black powder on one production line, improving versatility and reducing costs. The produced lithium hydroxide meets the purity standards of cathode manufacturers, which is in line with the EU battery regulations' goals of 50% lithium recovery rate by 2027 and 80% by 2031 [15].

Group 1: Battery Innovations - Lithium titanate materials create a "fuse protection wall" for enhanced safety in batteries [1] - JinChuan Group showcases a closed-loop model for battery materials, featuring nine types of cathode materials [2] - CATL's sodium-ion battery maintains 90% usable capacity at -40°C, with an energy density of 175Wh/kg [2] - CATL's dual-core battery architecture allows for different chemical systems to meet various driving needs [2] Group 2: Battery Safety - Huzhou Yongxing Lithium Battery Technology's lithium titanate batteries feature a "self-fusing" protection mechanism to prevent short circuits [3] - The unique "bidirectional" pressure relief structure of the "Fluorine Core" cylindrical battery prevents thermal runaway [4] - The "Fluorine Core" battery's single-sided current collection design reduces manufacturing costs and improves efficiency [4] Group 3: Battery Recycling - The call for green and low-carbon development in the battery industry emphasizes the importance of battery recycling [5] - CATL's one-stop battery recycling solution achieves a 99% recovery rate of battery components, with nickel, cobalt, and manganese recovery rates at 99.6% and lithium at 93.8% [5] - The global battery material production is expected to be half from recycled lithium and half from lithium ore by 2042 [6] - JinChuan Group is advancing its waste battery recycling system, while XinWangDa showcases its intelligent production line and green lifecycle [6]

Battery - CATL plans to increase its lithium iron phosphate battery production capacity by 10GWh through a technical transformation project, with a total production capacity expected to reach 40GWh by 2026 [2] - Funeng Technology is set to complete a pilot production line for sulfide all-solid-state batteries with a design capacity of 0.2GWh by the end of this year, aiming for GWh-level production by 2026 [3] - Shaoxing Fudi's lithium battery project, with an annual production capacity of 15GWh, is expected to commence production within this year [5] - Honeycomb Energy plans to trial production of semi-solid-state batteries in Q4 2025, with an initial production capacity set at 2.3GWh [7] Materials - Xiamen Tungsten's revenue for the first half of 2025 reached 7.534 billion yuan, a year-on-year increase of 18.04%, with net profit at 307 million yuan, up 27.76% [9] Overseas - LG Energy Solution and Toyota Tsusho have established a joint venture in the U.S. for battery recycling, planning to process 13,500 tons of battery waste annually by 2026 [11][12]

Group 1: Industry Insights - The Yarlung Tsangpo River hydropower project, with an investment of 1.2 trillion, has been approved, which is expected to benefit industries such as civil explosives and cement in Tibet [2] - The rare earth price index reached a new high of 192.24 points in July, with a month-on-month increase of over 6%, indicating a trend of accelerating price increases due to China's export controls against the U.S. [3] - The establishment of a joint venture by LG Energy and Toyota in the U.S. for battery recycling marks a shift in the global supply chain dynamics, potentially reducing China's dominance in battery raw materials [6] Group 2: Company Performance - Sanhua Group expects a net profit of 1.12 to 1.33 billion for the first half of the year, representing a year-on-year growth of 10% to 30% [4] - Perfect World anticipates a net profit of 480 to 520 million for the first half of 2025, recovering from a loss of 177 million in the same period last year, driven by the success of its new MMORPG game [8][9]

Group 1 - The core viewpoint of the article highlights the collaboration between CATL and BHP to promote the electrification of mining operations through integrated solutions [2] - CATL has signed a memorandum of cooperation with BHP, focusing on electric mining equipment, fast charging infrastructure, energy storage, and battery recycling [2] - BYD's subsidiary, FDB, has also reached a memorandum of understanding with BHP to explore power battery systems for heavy mining equipment and related fast-charging infrastructure [4] Group 2 - BHP, headquartered in Melbourne, Australia, is a major multinational mining company formed from the merger of BHP and Billiton in 2001, with products including iron ore, coal, copper, aluminum, nickel, oil, LNG, magnesium, and diamonds [6] - As of July 11, BHP's total market capitalization is $132.1 billion, equivalent to approximately 93.22 billion RMB [7]

Core Viewpoint - CATL is gradually reducing its upstream investments but remains a key partner for upstream material manufacturers seeking transformation, as evidenced by its recent collaboration with BHP to electrify mining operations through a comprehensive solution [1][3]. Group 1: Collaboration with BHP - CATL and BHP have signed an agreement to collaborate in areas such as fast-charging infrastructure, electrification of mining equipment, energy storage, and battery recycling [1][3]. - BHP aims for net-zero greenhouse gas emissions by 2050, recognizing CATL's leading technology in energy storage and batteries as a significant advantage for their partnership [2][3]. Group 2: Energy Storage Business - CATL has secured numerous energy storage orders this year, including a record 3GW/24GWh project in collaboration with Quinbrook in Australia, and a total of 45GWh in energy storage-related orders by early July [5][6]. - The EnerQB product developed with Quinbrook can operate for 8 hours, showcasing the successful R&D collaboration between the two companies [5]. - CATL is also involved in the 500MW/2000MWh Collie storage project in Australia, supplying over 600 EnerC Plus storage systems [5]. Group 3: Battery Business with Automotive Manufacturers - CATL is expanding its battery business, with a new factory in Indonesia set to reach a capacity of 15GWh by 2026, involving mining, smelting, battery manufacturing, and material recycling [8][9]. - A domestic factory in Shandong has begun shipping energy storage batteries to North America, with a planned capacity of 160GWh [8][9]. - CATL has strengthened partnerships with several automotive manufacturers, including Geely, Dongfeng Nissan, Honda, and Mazda, focusing on battery technology collaboration and supply chain integration [10]. Group 4: Order Growth - 2023 has seen a surge in orders for CATL, with significant contracts from companies like DHL, Masdar, and others, indicating strong market demand and the potential for substantial future revenue growth [10].

Core Viewpoint - The article discusses the growing importance of battery recycling in the lithium battery industry, highlighting the strategic moves of companies like XINWANDA to establish a foothold in this emerging market [3][4][6]. Group 1: Event Information - The 2025 Fifth Start Point Two-Wheeled Battery Swap Conference and Lightweight Power Battery Technology Summit will be held on July 11, 2025, at the Shenzhen Baoan Dingshi International Hotel [2]. - The event is sponsored by various companies in the battery and electric vehicle sectors, including XINWANDA, Yadi Technology Group, and others [2]. Group 2: Company Developments - XINWANDA has established a new subsidiary, Jiangxi Xinsenyuan Recycling Technology Co., Ltd., focusing on battery recycling and related services, with a registered capital of 10 million yuan [3]. - The company is expanding its recycling business to capitalize on the growing demand for lithium and cobalt resource recycling, driven by new regulations such as the EU Battery Regulation [4][6]. Group 3: Market Trends - The battery recycling market is becoming a key competitive arena for global lithium battery companies, with major players like CATL and EVE Energy also entering this space [4][6]. - As of June 2023, EVE Energy has established 246 battery recycling network points globally, indicating a significant push towards building a comprehensive recycling infrastructure [3][4]. Group 4: Financial Performance - In 2024, XINWANDA's total shipment of power batteries reached 25.29 GWh, a year-on-year increase of 116.89%, with revenue from this segment amounting to 15.139 billion yuan, up 40.24% [6]. - The company is also seeking to enhance its competitiveness in overseas markets by accelerating the construction of projects in Vietnam, Hungary, and Thailand [6][8]. Group 5: Strategic Shifts - XINWANDA is shifting its investment focus, as evidenced by its recent application for an IPO on the Hong Kong Stock Exchange, aiming to become the third domestic power battery company to pursue an "A+H" listing [4][5]. - The company is facing increased competition in both the consumer and power battery markets, with rivals like EVE Energy and CATL ramping up their production capacities [7][8].

Group 1 - The fifth "Two-Wheeled Vehicle Battery Swap Conference" and "Lightweight Power Battery Technology Summit Forum" will be held on July 10-11, 2025, in Shenzhen [1] - Ningde Times led a new financing round for Galaxy General, raising 1.1 billion RMB, with total financing exceeding 2.4 billion RMB over two years [3] - Zhuhai Guanyu has been designated as a supplier for Dongfeng Nissan to develop and supply low-voltage lithium batteries [4] Group 2 - EVE Energy announced an investment of up to 8.654 billion RMB to build a new energy storage battery project in Malaysia [5] - Guoxuan High-Tech is advancing its 30GWh battery project, with a 10GWh new energy heavy truck cell project expected to begin trial production in October [7] - Yichang Chuangneng has successfully launched its first batch of stacked battery products, achieving a breakthrough in "offline delivery" [8] Group 3 - Funeng Technology plans to deliver small batches of its 60Ah sulfide all-solid-state batteries by the end of 2025, with energy density reaching 400-500 Wh/kg [9] - Ganfeng Lithium's new battery research institute and Pack integration project is set to begin trial production in July [10] - Huyuan Lithium Innovation has delivered high-performance solid-state batteries for drones, with energy density ranging from 320-600 Wh/kg [11] Group 4 - Changhong Sanjie has officially launched its fourth-phase battery project in Jiangsu, with a production capacity exceeding 600 million units annually [12] - Zhongxin Innovation has signed a contract for its fourth-phase battery and energy storage system project in Wuhan, with an expected annual output value exceeding 10 billion RMB [14] - Kedali plans to invest up to 50 million euros in Hungary for a precision component project related to power batteries [17] Group 5 - Sanmei Co. announced a delay in its 50,000 tons/year lithium hexafluorophosphate project, with completion now expected by June 2027 [18] - Guizhou's 450,000 tons/year lithium iron phosphate precursor project has passed environmental impact assessment [19] - Dingsheng Technology has developed multiple electrolyte products that have been certified by leading battery manufacturers [20] Group 6 - Cangge Mining has received approval for a 4.5 billion RMB lithium carbonate project in Tibet, with an estimated annual production of 50,000 tons [21] - The cobalt export ban in the Democratic Republic of Congo has been extended for three months, potentially tightening supply and increasing prices [22] - Jiangsu Aoke Chemical is planning to expand its production capacity for high-end fine chemical materials, including battery-grade solvents [23] Group 7 - A public notice has been issued for a 10,000 tons/year lithium-ion battery precursor project in Sichuan [24] - The global lithium battery equipment market is projected to reach 79.2 billion RMB in 2024, with a 26.2% year-on-year decline [26] - By 2027, the global lithium battery equipment market is expected to grow to 141.9 billion RMB [27] Group 8 - Xianlead Intelligent has completed the delivery of core equipment for solid-state batteries, marking a significant milestone in its supply chain [28] - Liqi Intelligent's IPO has been accepted, aiming to raise 1.008 billion RMB for automation and R&D projects [29] - Tianjin Teda and Guangdong Bangpu have established a battery recycling company, focusing on the recycling and reuse of used batteries [31] Group 9 - A lithium battery recycling project in Heilongjiang has been publicly announced, with a total investment of 120 million RMB [32] - A new battery recycling project in Jiangsu aims to process over 6,000 tons of battery materials annually [33] - A 25,000 tons/year battery recycling project has been approved in Fujian, with a total investment of 220 million RMB [34] Group 10 - Tesla has signed an agreement to invest approximately 4 billion RMB in a GWh-level energy storage project in Shanghai [37] - Changan Automobile has changed its name to "Chen Zhi Automotive Technology Group" [38] - Seres has secured 5 billion RMB in strategic investments from major financial institutions and industry funds [39]

Core Viewpoint - The memorandum of understanding between Jin Jing New Energy and EVE Energy aims to enhance collaboration in battery recycling and sustainable practices, positioning both companies as leaders in the global renewable energy market [1][2] Group 1: Collaboration Areas - The companies will jointly build a low-cost and efficient recycling service network, integrating quality resources within the industry to develop a global battery recycling business [1] - They will expand the secondary material resource pool by leveraging existing resources and partnerships, aligning with global green supply chain management requirements [1] - The partnership will utilize digital technology for the lifecycle management and traceability of secondary materials [1] - Both companies will collaborate on battery recycling technologies, sharing or co-developing more efficient and environmentally friendly recycling methods [1] - They will work together on the development and application of cascade battery technology to support the electrification transformation in Hong Kong [1] Group 2: Strategic Implications - The collaboration is expected to optimize the battery recycling business and develop innovative cooperation models, aiming to create efficient and effective battery material recycling and green logistics solutions on a global scale [2] - This partnership aligns with the company's strategic development goals and reinforces its position as a leader in the global renewable energy market [2]