Core Viewpoint - The rapid increase in the prices of electrolyte and lithium hexafluorophosphate since October indicates a significant supply-demand imbalance in the lithium battery industry [1][2][3]. Price Trends - As of October 27, the price of electrolyte reached 25,500 yuan/ton, a 25.62% increase from the beginning of October; lithium hexafluorophosphate price reached 98,000 yuan/ton, a 63.33% increase from the beginning of October [1][2]. - The price of lithium hexafluorophosphate peaked at 575,000 yuan/ton in February 2022 and has been under pressure since, with a forecasted price below 60,000 yuan/ton from late July 2024 to September 2025 [3]. Supply-Demand Dynamics - The price increase is attributed to a short-term supply-demand imbalance, with rising demand for lithium batteries driven by the growth in electric vehicles and energy storage [3][4]. - The demand for lithium batteries is expected to continue growing, particularly in the fourth quarter, which is traditionally a peak season for electric vehicle sales [4][5]. Industry Performance - The electrolyte segment's revenue and net profit growth median for 2024 showed significant pressure, but there has been an improvement in 2025, with a median revenue growth of 16.73% and net profit growth of 14.59% [5]. - The third quarter of 2025 is expected to show continued improvement in performance for the electrolyte segment, with median revenue and net profit growth of 24.05% and 67.57%, respectively [5]. Investment Outlook - As of October 27, 2025, the valuation of the lithium battery sector is significantly below the historical median, suggesting potential for growth based on the industry's development prospects and performance expectations [6]. - The recommendation is to focus on key players in the electrolyte and lithium hexafluorophosphate segments due to their expected performance improvements [6].