Core Viewpoint - The current supply of power batteries in China is tightening, leading to increased competition among automakers to secure battery capacity as the demand for electric vehicles rises significantly in the fourth quarter of the year [1][2][3]. Group 1: Battery Supply and Demand Dynamics - The production capacity of power battery manufacturers in China is reaching high utilization rates, prompting automakers to "fight" for battery supplies, particularly for ternary lithium and lithium iron phosphate batteries [1][2]. - Data from the China Association of Automobile Manufacturers (CAAM) indicates that from January to October, the production and sales of new energy vehicles reached 13.015 million and 12.943 million units, respectively, marking a year-on-year increase of over 30% [2]. - The expectation of a reduction in purchase tax for new energy vehicles in the coming year is driving automakers to accelerate their delivery schedules to capitalize on the current market conditions [3]. Group 2: Impact of Policy Changes - The anticipated reduction in purchase tax is influencing consumer behavior, leading to a surge in orders as consumers rush to purchase vehicles before the tax changes take effect [2][3]. - The increase in consumer demand is creating pressure on battery supply, particularly for automakers with strong order backlogs [2][3]. Group 3: Storage Market Influence - The booming demand for energy storage solutions is significantly impacting the supply of power batteries, as many production lines are being redirected to meet storage needs, particularly for lithium iron phosphate batteries [3][5]. - In the third quarter, China's energy storage lithium battery shipments reached 165 GWh, a year-on-year increase of 65%, indicating a robust growth trajectory in the storage market [4]. - Analysts suggest that the current tightness in power battery supply is a short-term issue, but the demand for storage solutions is expected to remain strong, with global installation growth projected at 40% to 50% next year [5][6].

Group 1 - The current supply of power batteries in China is tightening, with high capacity utilization rates, leading to competition among automakers to secure battery supplies [1][2] - The sales of new energy vehicles (NEVs) in China have surged, with a 30% year-on-year increase in production and sales from January to October, and October's monthly sales exceeding 50% of total new car sales for the first time [2][4] - The upcoming reduction in purchase tax for NEVs is prompting consumers to accelerate their vehicle purchases, creating additional pressure on battery supply [4][5] Group 2 - The demand for lithium batteries in the energy storage market is significantly increasing, contributing to the tight supply of power batteries [5][6] - In Q3, China's energy storage lithium battery shipments reached 165 GWh, a 65% year-on-year increase, with total shipments for the first three quarters exceeding 430 GWh [6][7] - The current hot demand in the energy storage market is causing a "reverse siphon" effect on the power battery supply chain, as manufacturers prioritize energy storage specifications over automotive battery production [6][7]