Core Viewpoint - The performance of the new energy vehicle (NEV) market in the first half of 2025 is strong, with sales reaching 6.937 million units, a year-on-year increase of 40.3%, and a penetration rate of 44.3% [1] Group 1: Market Performance - NEV sales in the first half of 2025 reached 6.937 million units, up 40.3% year-on-year, with a penetration rate of 44.3% [1] - The share of pure electric vehicles (EVs) is 63.6%, an increase of 2.6 percentage points year-on-year, while plug-in hybrid vehicle (PHEV) sales reached 2.521 million units, up 11.4% [1] - Exports of new energy passenger vehicles totaled 1.011 million units, a year-on-year increase of 71.3%, with PHEVs accounting for 35.8% of exports [1] Group 2: Policy and Market Drivers - The increase in subsidies for vehicle trade-ins and the continuous improvement of the driving environment are driving demand in the NEV sector [1] - The impact of the EU's tariff increases is gradually diminishing, allowing Chinese automakers to accelerate their global expansion [1] Group 3: Future Projections - It is projected that wholesale sales of new energy passenger vehicles will reach 16.23 million units in 2025, representing a year-on-year growth of 32.1%, with a penetration rate of 55% [1] Group 4: Investment Opportunities - The New Energy Vehicle ETF (159806) tracks the CS New Energy Vehicle Index (399976), which includes key listed companies in the NEV supply chain, reflecting the overall performance of China's NEV industry [1]

Investment Rating - The report maintains an "Outperform" rating for the lithium battery industry [1][5]. Core Insights - The lithium battery sector has shown significant growth, with the index rising 15.16% in June 2025, outperforming the Shanghai Composite Index, which increased by 2.18% [5][9]. - In June 2025, China's new energy vehicle sales reached 1.329 million units, a year-on-year increase of 26.69% and a month-on-month increase of 1.68% [5][16]. - The report emphasizes the importance of monitoring upstream raw material prices, monthly sales, and developments in solid-state battery technology [5]. Summary by Sections Market Review - The lithium battery index and new energy vehicle index both outperformed the Shanghai Composite Index in June 2025 [5][9]. - A total of 98 stocks in the lithium battery sector rose, with an average increase of 11.19% [9][11]. New Energy Vehicle Sales and Industry Prices - In June 2025, new energy vehicle sales in China accounted for 45.76% of total vehicle sales, marking a historical high for the month [16]. - The report projects continued growth in new energy vehicle sales, supported by favorable policies and improved cost-performance ratios [16][20]. Industry and Company News - The report highlights significant partnerships and developments in the industry, including LG Energy Solution's supply agreement with Chery Automobile for cylindrical batteries [55]. - Xiaomi's plans for electric vehicle production and the establishment of a new factory are also noted, indicating a growing interest in the electric vehicle market [55][58].

Group 1 - The core viewpoint of the article highlights the significant growth in the flow of new energy vehicles (NEVs) during the upcoming "May Day" holiday, with an expected daily average flow of NEVs reaching nearly 20% of total traffic, up from 13.3% in the same period last year and 16.4% during the 2025 Spring Festival [2] - The Ministry of Transport anticipates an average daily traffic volume of approximately 62 million vehicles on national highways during the holiday, with both interprovincial traffic and NEV traffic expected to increase [2] - The peak travel times are identified, with congestion expected on May 1st between 10 AM and 12 PM for outbound travel and on May 4th between 4 PM and 6 PM for return travel [2] Group 2 - The rapid development of China's NEV industry is attributed to policy support and technological advancements, with major competitors including traditional automakers and new energy vehicle startups [3] - NEV companies are primarily concentrated in first-tier cities such as Beijing, Shanghai, Guangzhou, and Shenzhen, with foreign automakers focusing their investments in these regions [3] - The retail sales of passenger vehicles in March reached 1.94 million units, a year-on-year increase of 14.4%, with NEVs accounting for 990,000 units sold, reflecting a significant year-on-year growth of 38.0% [5] Group 3 - The market for NEVs is entering a steep growth phase, with predictions indicating that sales could reach 16.14 million units by 2025, representing a year-on-year growth of 32% [7] - The penetration rate of NEVs in the domestic market has rebounded to 51.1%, driven by policies such as scrapping subsidies and tax exemptions for new energy vehicle purchases [5] - The establishment of the "New Energy Vehicle Industry Planning Institute" by Qianzhan Industry Research Institute aims to provide comprehensive consulting services for industrial planning and investment attraction [9]

Investment Rating - The report maintains an investment rating of "Outperform the Market" for the lithium battery industry [5][6][9]. Core Viewpoints - The lithium battery sector has shown strong sales growth, with March 2025 sales of new energy vehicles reaching 1.237 million units, a year-on-year increase of 40.09% and a month-on-month increase of 36.86% [5][16]. - The report highlights the importance of monitoring upstream raw material price trends, monthly sales, and domestic and international trade policies as key factors influencing the industry's performance [5][9]. - Despite a decline in the lithium battery index by 9.76% in March 2025, the overall industry outlook remains positive, driven by strong demand and supportive policies [2][5]. Summary by Sections 1. Market Review - In March 2025, the lithium battery index underperformed the CSI 300 index, declining by 9.76% compared to a 0.03% drop in the CSI 300 [2][9]. - Among individual stocks, 23 stocks in the lithium battery sector rose, while 83 fell, indicating a challenging market environment [9][10]. 2. New Energy Vehicle Sales and Industry Prices - New energy vehicle sales in China reached 1.237 million units in March 2025, with a significant year-on-year growth of 40.09% [5][16]. - The report notes that the price of battery-grade lithium carbonate was 70,300 CNY/ton, down 6.08% from early March 2025, while lithium hydroxide was priced at 71,800 CNY/ton, a decrease of 2.21% [5][40]. - The report emphasizes the need to focus on the price trends of upstream raw materials and the overall market dynamics [5][9]. 3. Industry and Company News - The report outlines various industry developments, including government policies aimed at promoting electric vehicle infrastructure and the establishment of competitive battery supply chains in Europe [58][59]. - It highlights the strategic partnerships and technological advancements being made by key players in the lithium battery sector, such as BYD and CATL [58][59].