Core Viewpoint - The article highlights the significant growth of the UK energy storage market, driven by strong collaboration between the UK and China in renewable energy and low-carbon technologies, positioning the UK as a leading player in Europe’s energy storage sector [2][4]. Group 1: UK Energy Storage Market Growth - The UK has become the strongest growth area for energy storage in Europe, with a growth rate of 125% projected for the first three quarters of 2025, surpassing Germany and Italy [2][4]. - The UK aims to achieve a battery storage target of 23-27 GW by 2030, with an annual addition of 4.4 GW, translating to a demand increase of 13 GWh per year [4]. - The capital expenditure for new storage projects in the UK is expected to decrease by approximately 30% from 2022 to 2024, maintaining an internal rate of return (IRR) of over 10% for new projects [4]. Group 2: Long-Duration Energy Storage (LDES) Strategy - The UK has elevated long-duration energy storage to a national strategic level, establishing a legal framework to support its deployment through the Planning and Infrastructure Act of 2025 [5]. - The introduction of an "upper and lower limit" revenue mechanism aims to provide revenue certainty for long-duration storage projects, encouraging large-scale investments [5]. - The stringent technical and market barriers in the UK are filtering out companies with core competencies, as the market demands systems capable of withstanding high-frequency grid fluctuations [5][6]. Group 3: Chinese Companies in the UK Market - Chinese energy storage companies, such as Envision, CATL, and BYD, are emerging as key players in the UK market, with Envision leading in storage orders [6][8]. - In 2025, major Chinese companies are projected to sign energy storage orders totaling approximately 142.53 GWh globally, with Envision securing the largest contracts in the UK [9]. - The competitive landscape in the UK is characterized by a focus on understanding complex power systems and adapting to market rules, where Chinese firms are leveraging their comprehensive capabilities [6][9]. Group 4: Global Expansion of Chinese Energy Storage Companies - Chinese energy storage companies are increasingly expanding their global footprint, with a total overseas order volume of approximately 284.26 GWh expected in 2025, significantly higher than previous years [9]. - Companies like CATL and Envision are planning or have already established deep industrial layouts overseas, with disclosed projects exceeding 30 and total investment budgets surpassing 400 billion RMB [10]. - Envision is noted for its extensive global presence, with production bases in multiple countries, including a significant battery manufacturing facility in the UK [11]. Group 5: Competitive Landscape and Regulatory Challenges - The global competition in the energy storage sector is shifting from commercial competition to regulatory competition, with Western countries implementing policies to increase barriers for Chinese manufacturers [13]. - The EU's initiatives, such as the Net Zero Industry Act and the Critical Raw Materials Act, aim to reshape market dynamics and reduce dependency on external suppliers, impacting the operational landscape for Chinese firms [13]. - Future competition in the global energy storage market will increasingly focus on technological strength, globalization capabilities, and innovative business models [13][14].

Core Viewpoint - The company emphasizes the importance of the long-duration energy storage market and has made strategic arrangements to capitalize on this opportunity [1] Group 1: Company Strategy - The company's energy storage business is identified as a clear second growth curve, with sufficient orders on hand and tight production schedules [1] - The company is actively expanding production through fundraising projects, focusing on residential energy storage, commercial energy storage, and data centers, which require high cycle life and reliability [1] Group 2: Technological Focus - The company is currently concentrating on enhancing the intrinsic safety, cycle life, and consistency of lithium battery and nickel-hydrogen storage products [1] - Development of high-rate cell products is being prioritized to meet diverse market demands [1] - The company will continue to closely monitor and research other long-duration energy storage technologies, including flow batteries, to ensure the forward-looking nature of its technological pathways [1]

1. Report Industry Investment Rating - Not provided in the given content 2. Core View of the Report - The fundamentals of lithium carbonate remain favorable. In the short - term, due to large price fluctuations and the approaching Spring Festival, it is advisable to focus on position - holding risks and adopt a range - trading strategy. If the price correction is significant, one can consider going long at low prices [4] 3. Summary by Related Catalogs Market Analysis - On February 4, 2026, the lithium carbonate main contract 2605 opened at 150,000 yuan/ton and closed at 147,220 yuan/ton, with a 1.32% change in the closing price compared to the previous day's settlement price. The trading volume was 311,897 lots, the holding volume was 359,912 lots (previous day: 355,770 lots), the basis was 4,100 yuan/ton (average price of electric carbon - futures), and the lithium carbonate warehouse receipts were 34,114 lots, a change of 1,030 lots from the previous trading day [1] Spot Market - According to SMM data, battery - grade lithium carbonate was quoted at 142,000 - 164,000 yuan/ton, a change of - 500 yuan/ton from the previous trading day; industrial - grade lithium carbonate was quoted at 139,000 - 160,000 yuan/ton, also a change of - 500 yuan/ton. The price of 6% lithium concentrate was 2,045 dollars/ton, with no change from the previous day [2] Policy Impact - On January 30, 2026, the National Development and Reform Commission and the National Energy Administration issued a notice to improve the capacity price mechanism on the power generation side. This policy encourages the construction and operation of long - term energy storage and expands the compensation scope, which will have a positive impact on energy storage demand and lithium carbonate prices [2] Inventory Situation - According to SMM statistics, the current spot inventory is 110,425 tons, a decrease of 1,044 tons compared to the previous period. Among them, smelter inventory is 18,090 tons, a decrease of 1,071 tons; downstream inventory is 41,485 tons, a decrease of 1,253 tons; other inventory is 50,850 tons, an increase of 1,280 tons. In December, the de - stocking pattern is expected to continue, but the pace has slowed down, and attention should be paid to whether there is an inventory inflection point at the end of the month [3] Strategy - Short - term: Focus on position - holding risks and mainly conduct range trading. - Unilateral trading: Consider going long at low prices if the price correction is large. - Inter - period trading: Not recommended. - Inter - variety trading: Not recommended. [4]

新能源及有色金属日报 | 2026-02-04 淡季不淡，碳酸锂价格反弹 根据SMM最新统计数据，现货库存为107482吨，环比-1414吨。其中冶炼厂库存为19003吨，环比-831吨；下游库 存为41485吨，环比+3007吨；其他库存为47880吨，环比-3590吨。 策略 当前价格波动较大，春节假期临近，需关注持仓风险，短期区间操作为主。但碳酸锂基本面依然较好，若回调幅 度过大，可考虑逢低做多。 单边：若回调幅度较大，可考虑逢低做多 风险 2026年期货市场研究报告 第1页 请仔细阅读本报告最后一页的免责声明 市场分析 2026-02-03，碳酸锂主力合约2605开于140040元/吨，收于148100元/吨，当日收盘价较昨日结算价变化4.63%。当日 成交量为619542手，持仓量为355770手，前一交易日持仓量347698手，根据SMM现货报价，目前基差为7520元/ 吨（电碳均价-期货）。当日碳酸锂仓单33084手，较上个交易日变化843手。 碳酸锂现货：根据SMM数据，电池级碳酸锂报价142000-165000元/吨，较前一交易日变化-2000元/吨，工业级碳酸 锂报价139000-1610 ...

Report Industry Investment Rating - Not provided Core Viewpoints - The fundamentals of lithium carbonate remain good. If the price correction is significant, consider going long on dips. However, due to large price fluctuations and the approaching Spring Festival, attention should be paid to position risks, and short - term trading should be mainly range - bound operations [3] Summary by Related Catalogs Market Analysis - On February 2, 2026, the main lithium carbonate contract 2605 opened at 146,000 yuan/ton and closed at 132,440 yuan/ton, with a - 13.99% change in the closing price compared to the previous day's settlement price. The trading volume was 644,314 lots, and the open interest was 347,698 lots (the previous day's open interest was 372,601 lots). The current basis is 7,220 yuan/ton (average price of electric carbon - futures). The number of lithium carbonate warehouse receipts was 32,241 lots, a change of 1,610 lots from the previous trading day [1] Spot Market - According to SMM data, the price of battery - grade lithium carbonate is quoted at 145,000 - 166,000 yuan/ton, a change of - 5,000 yuan/ton from the previous trading day; the price of industrial - grade lithium carbonate is quoted at 142,000 - 162,000 yuan/ton, also a change of - 5,000 yuan/ton from the previous trading day. The price of 6% lithium concentrate is 2,090 US dollars/ton, a change of - 85 US dollars/ton from the previous day [2] Policy Impact - The National Development and Reform Commission and the National Energy Administration issued the "Notice on Improving the Capacity Price Mechanism on the Power Generation Side" on January 30, 2026. This policy clearly defines the capacity price mechanism for the first time, encourages the construction and operation of long - term energy storage, and expands the compensation coverage, which will have a relatively positive impact on energy storage demand and lithium carbonate prices [2] Inventory Situation - According to SMM's latest statistics, the spot inventory is 107,482 tons, a month - on - month decrease of 1,414 tons. Among them, the smelter inventory is 19,003 tons, a month - on - month decrease of 831 tons; the downstream inventory is 41,485 tons, a month - on - month increase of 3,007 tons; other inventories are 47,880 tons, a month - on - month decrease of 3,590 tons [2] Strategy - Unilateral: If the price correction is significant, consider going long on dips. - Inter - period: None - Inter - variety: None [3]

Market Overview - As of January 30, the main contract for lithium carbonate futures closed at 148,200 CNY/ton, with a monthly price increase of 21.9% [2][12] - The highest price during the month reached 181,520 CNY/ton [2] - The average market price for industrial-grade lithium carbonate (99.0%) was 167,000 CNY/ton, up 41.53% year-on-year [2][12] - The average price for battery-grade lithium carbonate (99.5%) was 170,000 CNY/ton, reflecting a 41.67% increase year-on-year [2][12] Supply Side - Domestic lithium carbonate production in January was 104,000 tons, a decrease of 1.3% month-on-month [3][13] - Stringent regulations from the "Solid Waste Comprehensive Treatment Action Plan" have led to production cuts in some enterprises, particularly in Jiangxi [3][13] - Supply is expected to remain constrained into February due to pre-holiday production adjustments and shutdowns [3][13] Demand Side - Demand has exceeded expectations, driven by policy changes that reduced export tax on battery products, stimulating "export rush" [4][13] - The release of policies for large-scale equipment updates and trade-in programs has improved demand forecasts for the new energy vehicle market [4][13] - Despite traditional seasonal demand declines in January, the overall market for terminal power and energy storage has performed well [4][13] Cost and Profitability - Costs have continued to rise, with prices exceeding 11,000 USD/ton [14] - Profit margins have improved for companies with their own mines and salt lakes, while contract manufacturing fees have seen slight increases [14] Inventory Levels - Total inventory decreased to 107,500 tons, with lithium salt plant inventory stable and downstream inventory slightly reduced [14] Policy Impact - The National Development and Reform Commission and the National Energy Administration announced a new capacity pricing mechanism, which is expected to positively impact storage demand and lithium carbonate prices [5][14] Strategy Outlook - The new capacity pricing policy is anticipated to boost demand expectations, with lithium carbonate prices likely to continue rising [6][15] - However, caution is advised due to previous price increases and potential risks of market corrections [6][15]

Core Viewpoint - The new energy storage industry in China has experienced significant growth, with a total installed capacity of 66.43 GW and energy capacity of 189.48 GWh added in 2025, representing year-on-year increases of 52% and 73% respectively. The industry is expected to continue evolving towards longer-duration energy storage solutions and deeper integration with renewable energy sources [3][41][95]. Group 1: Industry Development Overview - In 2025, the cumulative installed capacity of new energy storage in China reached 213.3 GW, a year-on-year increase of 54% [13]. - The average storage duration for new energy storage systems has gradually increased from 2.11 hours in 2021 to 2.58 hours in 2025, with projections indicating it could reach 3.47 hours by 2030 [95]. - The top ten provinces in China accounted for nearly 90% of the total installed capacity, with Inner Mongolia leading in both energy and power capacity, surpassing California to become the world's top province [3][48]. Group 2: Market Trends and Projections - The growth rate of new energy storage installations is expected to slow down, but the large base will still generate significant absolute increments, with projections suggesting a cumulative installed capacity of over 370 million kW by 2030 [4]. - The market is transitioning from policy-driven growth to market-driven high-quality development, with expected annual compound growth rates of 20.7% to 25.5% from 2026 to 2030 [98]. - The penetration rate of new energy storage in wind and solar power generation has increased significantly, from 0.61% at the end of the 13th Five-Year Plan to 6.88% at the end of the 14th Five-Year Plan [17]. Group 3: Technological Advancements - During the 14th Five-Year Plan period, significant technological breakthroughs have been made in energy storage, including increased capacity of lithium battery cells and advancements in flow battery efficiency [9][10]. - The industry is witnessing a shift towards longer-duration storage solutions, with a notable increase in projects exceeding 4 hours of storage duration [45]. - The average available capacity of new energy storage systems has shown high reliability, with peak discharge capabilities reaching 44.53 million kW in 2025 [24]. Group 4: Project and Market Dynamics - The number of newly operational energy storage projects in 2025 was 5,014, with a total power capacity of 328.0 GW, indicating a shift towards larger-scale projects [39]. - The bidding landscape for new energy storage projects is becoming more rational, with a focus on quality over quantity, as the number of projects remains stable or slightly declines [53]. - The market is diversifying, with energy storage systems now participating in various market categories, including long-term, spot, and ancillary services [21].

Core Insights - The new energy storage industry in China has shown significant growth, with a cumulative installed capacity of 213.3 GW by the end of 2025, representing a year-on-year increase of 54% [2] - The market share of energy storage technology has diversified, with pumped storage accounting for 31.3% and new energy storage, led by lithium batteries, exceeding two-thirds of the total installed capacity [2] - The installed capacity of new energy storage reached 144.7 GW by the end of 2025, marking an 85% year-on-year increase and a 45-fold increase compared to the end of the 13th Five-Year Plan [2] Market Trends - In 2025, new energy storage added 66.43 GW/189.48 GWh, with power and energy scales growing by 52% and 73% year-on-year, respectively [3] - The top 10 provinces in terms of installed capacity each exceeded 5 GWh, collectively accounting for nearly 90% of the total, with Inner Mongolia leading in both energy and power installations [3] - The number of bidding sections for energy storage systems decreased by 10.4% to 690, while EPC bidding sections increased by 4.5% to 1,536, indicating a shift towards integrated delivery and risk outsourcing [3] Pricing and Procurement - The bidding scale for energy storage systems (excluding collective procurement) reached 121.5 GWh in 2025, a 140.1% increase year-on-year, while EPC bidding scale was 206.3 GWh, up 125.5% [4] - The average bidding price for energy storage systems showed a downward trend, with prices for lithium iron phosphate systems ranging from 391.14 to 913.00 yuan/kWh, and EPC average prices decreasing by 13.04% and 8.19% for 2h and 4h systems, respectively [4] Future Outlook - The new energy storage market is expected to move towards marketization, particularly in commercial and industrial sectors, with anticipated growth in installed capacity to over 30 GW by the end of the 14th Five-Year Plan [5] - The development of new energy storage will be driven by market forces, with a focus on expanding application scenarios and innovative business models during the 14th Five-Year Plan [6] - The average duration of new energy storage installations is projected to increase from 2.58 hours in 2025 to 3.47 hours by 2030, reflecting advancements in technology and growing market demand for long-duration storage [7]

Core Insights - The global energy storage market is experiencing rapid growth, with shipments exceeding 500GWh and a market growth rate of over 80%, yet CATL's market share has significantly dropped from 39% to 26% [1][2] - The competitive landscape is shifting, with companies like Hichain and Envision Energy making significant gains, indicating a transformation in market dynamics [1][4] Group 1: CATL's Market Position - CATL remains the leader in global energy storage cells, achieving over 130GWh in shipments for 2025, a growth of over 20% year-on-year, but its market share has declined by nearly 13 percentage points [2][3] - The traditional close partnerships with major integrators like Tesla are evolving, as system integrators seek diverse cell suppliers to ensure delivery security and cost advantages [2][3] Group 2: Rise of Competitors - Hichain Energy has emerged as a notable competitor, rapidly increasing its production capacity to over 100GWh and achieving profitability with a net profit of 213 million yuan in the first half of 2025 [4][5] - Envision Energy is leveraging its global presence and AI storage solutions, enhancing its competitive edge in the market [5] Group 3: Evolving Competition Landscape - The competition is shifting from merely GWh output to a multidimensional battle involving technology, globalization, and business models [6][7] - The focus is now on large cell technology, with companies racing to produce cells over 500Ah, which will impact energy density and lifecycle costs [6][7] Group 4: Globalization and Localization - The necessity for globalization is underscored by the significant increase in overseas orders, with Chinese storage companies signing contracts totaling nearly 284.26GWh in 2025, a 3.49 times increase from the previous year [6][7] - Localized operations are becoming essential for survival, as companies establish manufacturing bases closer to key markets to mitigate risks and enhance responsiveness [7]

Core Insights - The report from Huazhong Securities highlights significant growth in energy storage installations in both domestic and international markets, with a focus on new energy storage technologies and upcoming projects in various regions [1][2]. Demand Side - Domestic market: In 2025, new energy storage installations are expected to reach 58.6 GW/175.3 GWh, with a December 2025 tender scale of 22.5 GW/55.8 GWh, showing a year-on-year increase of 75% and a month-on-month increase of 88% [2]. - Indian market: By 2025, energy storage system installations are projected at 0.5 GWh, with tenders for standalone storage at 45 GWh and solar storage projects at 15.2 GWh. The Indian government mandates the integration of 4 GW/17 GWh of electrochemical storage projects by the 2025-26 fiscal year without delays [1][2]. High ROE Market - Germany: By December 2025, energy storage installations are expected to be 394 MWh, a decrease of 20.4% year-on-year. The breakdown includes 210 MWh for household storage, down 26.83% year-on-year, and 159 MWh for large-scale storage [3]. - Italy: In Q2 2025, energy storage installations reached 817 MW/2728 MWh, reflecting a year-on-year increase of 48% and 75% respectively [3]. - The UK: As of Q3 2025, there are 121.76 GW of energy storage projects awaiting construction, an increase of 21.83 GW from Q2 [3]. Leading Indicators - Europe: The average wholesale electricity price in nine core European countries is projected to be €111.44/MWh by December 2025, a 7% increase month-on-month [4]. - Australia: In Q3 2025, the net income from energy storage in the national electricity market reached $111.9 million, a year-on-year increase of 47% [4]. - The US: The number of pending projects has increased by 17% year-on-year, while the prices for utility-scale storage systems have decreased by 11% [4]. Supply Side - In December 2025, the average tender price for domestic energy storage systems is expected to be 0.669/0.455 yuan/Wh for 2/4-hour systems, with a month-on-month change of +12%/-3% [6]. - In the first three quarters of 2025, global energy storage cell shipments reached 410.45 GWh, a year-on-year increase of 98.5%, with total energy storage system shipments at 286.35 GWh [6].