Core Viewpoint - The lithium battery industry is experiencing a long-awaited "positive transmission," driven by a recovery in demand from the downstream energy storage and battery sectors, which is positively impacting upstream raw material prices [4][6]. Price Movement - The main contract for lithium carbonate futures closed at 79,940 yuan/ton, marking a 4.17% increase from the previous trading day, reaching a new high since September [5][6]. - The price of battery-grade lithium carbonate rose by 1,500 yuan today, averaging 77,600 yuan/ton, maintaining a steady increase for five consecutive trading days [6]. Demand Recovery - The core support for the price increase is the unexpected recovery in demand, particularly in the energy storage market, where the bidding prices have rebounded, indicating a positive trend of "volume and price rising together" [8][7]. - Leading companies like CATL are ramping up global production capacity to meet the surge in customer orders [9]. Material Price Surge - The price of lithium hexafluorophosphate has surged significantly, with an increase of over 4,000 yuan/ton in September and a doubling of prices in October, surpassing the psychological barrier of 80,000 yuan [10]. - High-end cathode materials, such as high-pressure lithium iron phosphate, have seen a dramatic increase in demand, leading to price hikes of hundreds to thousands of yuan per ton by major companies since September [11]. Supply Dynamics - The current price rebound is occurring alongside a strengthening supply side, indicating that demand has outpaced expectations of supply easing [12]. - As of October 17, domestic lithium carbonate weekly production reached approximately 20,000 tons, continuing to grow and setting a new historical high [13]. - The domestic lithium carbonate monthly production is expected to exceed 90,000 tons in October [15]. Policy Environment - The Ministry of Industry and Information Technology has released positive signals during the 2025 New Energy Battery Industry Development Conference, emphasizing the need for technological innovation and enhancing supply chain resilience [16]. - Despite the recovery in demand boosting market sentiment, the supply-demand dynamics remain complex, with overall lithium carbonate inventory still at a historical high of 130,000 tons [16].