Investment Rating - The report maintains an "Outperform" rating for the lithium battery industry [1][6]. Core Views - The lithium battery sector has shown strong performance, with the index rising 1.94% in October 2025, outperforming the Shanghai Composite Index, which fell by 1.46% [6][10]. - The sales of new energy vehicles (NEVs) in China exceeded 50% for the first time in October 2025, with 1.715 million units sold, marking a year-on-year increase of 19.93% [6][14]. - The report highlights a significant increase in the prices of upstream raw materials, including lithium carbonate and lithium hydroxide, which are expected to continue fluctuating upwards in the short term [6][40]. Summary by Sections 1. Market Review - In October 2025, the lithium battery index outperformed the Shanghai Composite Index, with 54 stocks rising and 50 falling within the sector [10][12]. - Key stocks such as Haike New Energy and Tianji Shares saw substantial gains, while companies like Funeng Technology experienced notable declines [10][12]. 2. New Energy Vehicle Sales and Industry Prices - NEV sales in China reached 1.715 million units in October 2025, with a market share of 51.63%, driven by supportive policies and improved vehicle cost-performance ratios [6][14]. - The report notes that the total NEV sales for 2025 are projected to continue growing, supported by favorable macroeconomic policies [14][17]. 3. Industry and Company News - The report outlines significant collaborations in the industry, including partnerships between leading companies like CATL and logistics providers to enhance supply chain efficiency [54]. - It also mentions strategic agreements aimed at advancing electric vehicle technology and expanding market reach [54]. 4. Industry Chain Prices - The report details the price trends of key materials, indicating that lithium carbonate prices have risen to 85,000 CNY/ton, a 15.65% increase from early October 2025 [6][40]. - Other materials such as cobalt and lithium hydroxide have also seen price increases, reflecting the ongoing demand and supply dynamics in the industry [6][40].