Economic Growth and Industrial Performance - Sichuan's GDP reached 31,918.2 billion yuan in the first half of the year, with a year-on-year growth of 5.6% [1] - The province's industrial output value increased by 7.3%, marking it as a significant contributor to the economy [2] - High-tech manufacturing saw a remarkable growth of 13.1%, with the aerospace sector growing at 14.7% [2] Key Industrial Developments - Hanmo Industrial, a key player in high-end manufacturing, has established a new base in Chengdu with a total investment of 300 million yuan, aiming for an annual output of 300-500 units and a production value of 200-300 million yuan [3] - Sichuan Sanchuan Aviation Technology Co., Ltd. has benefited from the industrial park's supportive environment, achieving a 60% reduction in logistics costs and a 30% decrease in management cycle time [4] Export and International Presence - Sichuan's foreign trade reached 519.09 billion yuan in the first half of the year, with exports amounting to 315.62 billion yuan, a year-on-year increase of 8.2% [5] - Chengdu Longcheng Development Technology Co., Ltd. has established a strong international presence, exporting to over 40 countries and achieving a revenue of 2.933 billion yuan last year, with exports accounting for nearly 90% [10][11] Infrastructure and Project Development - Sichuan's key projects have seen significant investment, with 810 projects completing investments of 501.98 billion yuan, achieving a completion rate of 63.4% [11] - The Mianyang Youxian District Aviation and Gas Turbine Industrial Park is set to become a core hub for high-tech intelligent manufacturing, with a planned investment of approximately 16.4 billion yuan [12][13] New Energy Sector Growth - The new energy sector is rapidly developing, with companies like Xinwangda investing 10 billion yuan in a project that was completed in just 100 days, showcasing the local government's support [14][16] - Xinwangda's new production line is expected to significantly enhance the capacity and efficiency of its energy storage batteries [16]

1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report - Yesterday, the 2509 contract of lithium carbonate futures dropped 7.98% to 73,120 yuan/ton. The average price of battery - grade lithium carbonate rose 1,000 yuan/ton to 73,900 yuan/ton, the average price of industrial - grade lithium carbonate rose 1,000 yuan/ton to 71,700 yuan/ton, and the price of battery - grade lithium hydroxide (coarse particles) rose 2,300 yuan/ton to 65,420 yuan/ton. The warehouse receipt inventory increased 280 tons to 12,276 tons [3]. - On the supply side, the production in July is expected to increase 3.9% month - on - month to 81,150 tons, and the weekly production decreased 485 tons to 18,630 tons. In June 2025, China's lithium carbonate import volume was 17,700 tons, a 16.3% month - on - month decrease. On the demand side, the production schedule in July increased slightly month - on - month, and the consumption of lithium carbonate by the two major main materials increased 3% month - on - month to about 80,800 tons. On the inventory side, the weekly inventory increased 550 tons to 143,170 tons, with downstream inventory increasing 1,544 tons to 42,815 tons, intermediate link inventory increasing 1,660 tons to 44,970 tons, and upstream inventory decreasing 2,654 tons to 55,385 tons [3]. - The core short - term fundamental contradiction lies in concerns about supply disruptions, but there is still no clear announcement. Affected by the market, market volatility is high, and opportunities to short volatility in the future market can be monitored [3]. 3. Summary by Relevant Catalogs 3.1 Daily Data Monitoring - Futures: The closing price of the main contract was 73,120 yuan/ton, down 7,400 yuan from July 25; the closing price of the continuous contract was 71,700 yuan/ton, down 7,700 yuan [5]. - Lithium ore: The price of lithium spodumene concentrate (6%, CIF China) was 805 US dollars/ton, down 5 US dollars; the price of lithium mica (Li2O: 1.5% - 2.0%) remained unchanged at 1,165 yuan/ton, while the price of lithium mica (Li2O: 2.0% - 2.5%) rose 15 yuan to 1,805 yuan/ton. The prices of phospho - lithium - aluminum stone (Li2O: 6% - 7%) and (Li2O: 7% - 8%) decreased by 590 yuan and 600 yuan respectively [5]. - Lithium carbonate and lithium hydroxide: The prices of battery - grade and industrial - grade lithium carbonate increased by 1,000 yuan/ton, and the prices of various types of lithium hydroxide also increased, with an increase of 2,300 - 2,350 yuan/ton [5]. - Other products: The price of lithium hexafluorophosphate rose 250 yuan/ton. There were also changes in various price spreads and the prices of ternary precursors, cathode materials, and batteries [5]. 3.2 Chart Analysis 3.2.1 Ore Prices - Charts show the price trends of lithium spodumene concentrate (6%, CIF), lithium mica (1.5% - 2.0%), lithium mica (2.0% - 2.5%), and phospho - lithium - aluminum stone (6% - 7%) from 2024 to 2025 [6][8]. 3.2.2 Lithium and Lithium Salt Prices - Charts display the price trends of metallic lithium, battery - grade lithium carbonate average price, industrial - grade lithium carbonate average price, battery - grade lithium hydroxide price, industrial - grade lithium hydroxide price, and lithium hexafluorophosphate price from 2024 to 2025 [9][11][13]. 3.2.3 Price Spreads - Charts present the price spreads between battery - grade lithium hydroxide and battery - grade lithium carbonate, battery - grade lithium carbonate and industrial - grade lithium carbonate, CIF China - Japan - South Korea battery - grade lithium hydroxide and SMM battery - grade lithium hydroxide, and other spreads from 2024 to 2025, as well as the basis [16][17][19]. 3.2.4 Precursors and Cathode Materials - Charts show the price trends of ternary precursors, ternary materials, lithium iron phosphate, lithium manganate, and cobalt acid lithium from 2024 to 2025 [21][24][27]. 3.2.5 Lithium Battery Prices - Charts display the price trends of 523 square ternary battery cells, square lithium iron phosphate battery cells, cobalt acid lithium battery cells, and square lithium iron phosphate batteries from 2024 to 2025 [30][32][33]. 3.2.6 Inventory - Charts show the weekly inventory trends of downstream, smelters, and other links of lithium carbonate from December 2024 to July 2025 [35][36][38]. 3.2.7 Production Costs - The chart shows the production profit trends of lithium carbonate from different raw materials such as外购三元极片黑粉,外购磷酸铁锂极片黑粉,外购锂云母精矿, and外购锂辉石精矿 from 2024 to 2025 [39][40]. 4. Research Team Introduction - Zhan Dapeng, a science master, is the director of non - ferrous research at Everbright Futures Research Institute, a senior precious metals researcher, and has multiple professional titles. He has over a decade of commodity research experience, serves many spot leading enterprises, and has published dozens of professional articles. His team has won many awards [43]. - Wang Heng, a master of finance from the University of Adelaide in Australia, is a non - ferrous researcher at Everbright Futures Research Institute, mainly researching aluminum and silicon [44]. - Zhu Xi, a master of science from the University of Warwick in the UK, is a non - ferrous researcher at Everbright Futures Research Institute, mainly researching lithium and nickel [44].

Group 1 - The article presents a detailed distribution map of the global lithium battery industry, covering the entire supply chain from raw materials to end applications [2] - The distribution map highlights four major lithium battery industry clusters located in China, North America, Europe, and Southeast Asia [2] Group 2 - The distribution map is available for free to those who share the article on their social media and contact the editor [3] - The distribution map is currently being dispatched in order of registration [4]

Core Viewpoint - The Chinese renewable energy industry, particularly in solar and lithium battery sectors, is undergoing significant adjustments due to intense competition and market pressures, leading to a potential recovery driven by government intervention and supply-side reforms [1][3][16]. Group 1: Solar Industry - In 2024, 138 listed solar companies in China reported cumulative losses exceeding 15 billion, with 40% of these companies experiencing losses [3]. - The Ministry of Industry and Information Technology convened a meeting with major solar companies to discuss capacity reduction and combat excessive competition [4][6]. - Major companies have agreed to reduce production by 30% starting July, leading to a significant increase in prices for polysilicon and solar products, with price increases exceeding 30% since early July [6]. - The National Development and Reform Commission has proposed amendments to the pricing law to prevent below-cost pricing, signaling a shift towards stabilizing the market [6]. Group 2: Lithium Battery Industry - The lithium battery sector is also undergoing supply-side adjustments, with regulatory tightening affecting lithium carbonate supply in China [8]. - Internationally, major lithium producers are reducing output, raising concerns about global lithium resource availability, which has led to a rebound in lithium prices of over 20% since July [8][10]. - Demand for lithium batteries is expected to grow significantly, particularly with advancements in solid-state battery technology, which could open new markets and increase lithium demand substantially [10][11]. - The market for lithium battery equipment is projected to grow significantly, with investments in solid-state battery production expected to exceed current levels [11][12]. Group 3: Industry Outlook - The Chinese renewable energy industry has evolved from a position of vulnerability to a dominant global player, with over 80% market share in solar and lithium battery production [14]. - The industry is now facing internal challenges rather than external competition, with a consensus emerging among government and enterprises to eliminate ineffective competition and focus on sustainable growth [16]. - The future of the renewable energy sector in China is viewed as a promising opportunity for revival and expansion, provided that internal conflicts are managed effectively [16].

Investment Rating - The report maintains a "Positive" investment rating for the industry [5] Core Insights - The report highlights the ongoing "anti-involution" trend, which has led to significant price increases in lithium carbonate and polysilicon, benefiting the photovoltaic and lithium battery supply chains [9][13] - The Yarlung Tsangpo River hydropower project has commenced, with a total investment of approximately 1.2 trillion yuan, primarily focusing on external consumption [13] - The report emphasizes the importance of monitoring price changes across the photovoltaic supply chain and the impact of new technologies on the industry [15] Summary by Sections Photovoltaics - The photovoltaic industry is experiencing a price increase, with polysilicon dense material prices rising to 49-52 yuan/kg and silicon wafer prices increasing by 7%-10% [13][21] - The National Development and Reform Commission has solicited opinions on the amendment to the Price Law, aiming to regulate low-price dumping and "involution" competition [21] - The cumulative installed capacity of solar power in China has surpassed 1.1 billion kilowatts, with a year-on-year increase of 107% in the first half of 2025 [21] Energy Storage - The energy storage sector is witnessing a sustained increase in demand, with significant projects being initiated in Argentina and China [42][43] - The report notes that the approval process for energy storage projects in Jiangsu has been simplified, which is expected to stimulate growth in the sector [43] - The U.S. energy storage market continues to grow, with a total installed capacity of 5.91 GW in the first half of 2025, reflecting a year-on-year increase of 36.2% [49] Lithium Batteries - The lithium battery sector is stable, with a focus on solid-state battery technology and the impact of rising lithium prices on the supply chain [16] - The report recommends companies with stable profit margins and strong market positions, such as CATL and other second-tier players, as potential investment opportunities [16] Wind Power - The domestic offshore wind power sector is accelerating, with expectations for increased profitability as project deliveries ramp up [16] - The report highlights the importance of monitoring the performance of wind turbine manufacturers and the impact of rising material costs on profitability [16] Power Equipment - The commencement of the Yarlung Tsangpo hydropower project is expected to have a positive marginal impact on the power equipment sector [16] - The report suggests focusing on high-voltage transmission projects and the potential for new opportunities in power AI and virtual power plants [16] New Directions - The report discusses advancements in humanoid robotics and AI, with companies like Tesla and Google making significant investments in these areas [16] - It highlights the potential for growth in the robotics supply chain and related technologies, recommending companies involved in these sectors [16]

Core Viewpoint - The article highlights the groundbreaking ceremony of the anode material project by Qinghai Times New Energy Technology Co., Ltd., marking a significant step in the strategic cooperation with CATL and the development of a "trillion-yuan lithium battery industry base" in Qinghai [1]. Summary by Sections Project Overview - The anode material project, with an investment of 500 million yuan, aims to address the local production challenges in the lithium battery supply chain and is expected to be completed by May 2026 [1]. Strategic Importance - This project is a key milestone following the successful establishment of a 15 GWh energy storage battery project last year, indicating a deepening strategic partnership between Xining and CATL [1]. Economic Impact - The project will enhance local production capabilities, significantly improve capacity stability and cost competitiveness, and create 500 quality jobs, transitioning Xining's lithium battery industry from "single-point breakthroughs" to "full-chain collaboration" [1]. Competitive Advantage - By leveraging Qinghai's clean energy advantages and Xining's strategic location, the project aims to transform these into competitive advantages in the global lithium battery industry, thereby boosting the development momentum of Qinghai's new energy sector [1].

Group 1 - The article presents a detailed distribution map of the global lithium battery industry, covering the entire supply chain from raw materials to end applications [2] - The distribution map includes major lithium battery industry clusters in regions such as China, North America, Europe, Japan, and Southeast Asia [2] Group 2 - The distribution map is available for free to those who share the article on their social media and contact the editor [3] - The distribution map is being dispatched in order of registration [4]

Core Viewpoint - LG Energy Solution (LGES) reported a decline in revenue for Q2 2025, primarily due to fluctuations in raw material prices and policy impacts on North American energy storage batteries, despite stable EV battery sales [1][2]. Financial Performance - Revenue for Q2 2025 was 288.4 billion, a year-on-year decrease of 9.7% and a quarter-on-quarter decrease of 11.2%, with stable EV battery sales but a decline in North American energy storage revenue [1] - Gross margin improved to 18.8%, up 1.9 percentage points quarter-on-quarter; operating profit margin reached 8.8%, up 2.9 percentage points quarter-on-quarter, with Q3 benefiting from a US IRA subsidy of 25.4 billion (approximately 7.9 to 10.1 GWh of domestic production) [1] - Capital expenditure for Q2 was 140.8 billion, primarily for North American capacity expansion [1] 2025 Outlook - The company projects a revenue growth of 5% to 10% year-on-year for 2025, although the first half of 2025 saw a nearly 4% decline, indicating challenges ahead [2] - Demand for electric vehicles may slow in the short term, but advancements in autonomous driving technology and renewable energy projects are expected to drive long-term growth [3] - The PFE policy is increasing barriers to entry in the US market, enhancing the competitive advantage of companies with established local production and supply chains [3] Operational Developments - LGES is expanding energy storage battery capacity, with a new facility in Michigan officially starting production in Q2 2025, aiming to increase annual ESS battery capacity to 17 GWh by the end of the year and over 30 GWh by the end of 2026 in North America [4] - The company plans to begin mass production of mid-range battery products at its Poland factory in the second half of the year, including high-nickel and lithium iron phosphate (LFP) batteries [5] - LGES is enhancing its technological competitiveness by launching LFP batteries suitable for electric vehicles and energy storage, with plans to introduce batteries that can be charged in under 10 minutes by 2028 [6]

Summary of Key Points from Conference Call Industry Overview - The conference call focuses on the lithium battery sector, highlighting the impact of supply-side constraints and policy support on the industry [1][3]. Core Insights and Arguments - **Supply Constraints**: Lithium resource supply has contracted due to production halts and environmental rectifications by companies such as Jiangte Electric and Cangge Mining, leading to upward price elasticity for lithium carbonate [1][4]. - **Strong Performance in 2025**: The lithium battery supply chain showed robust growth in the first half of 2025, with battery shipments increasing by 68% year-on-year, and cathode material shipments rising by 53% [1][5]. - **Rising Demand for Power Batteries**: Domestic commercial vehicle power battery installations surged, with passenger vehicle installations up 136% and heavy truck sales up 186% [1][6]. - **Significant Energy Storage Demand**: Energy storage demand has exceeded expectations, with new policies in Gansu and Liaoning raising the annual energy storage installation forecast to 120-130 GW [1][6]. - **Material Supply Tightness**: Key material suppliers like Zhenhua New Materials and Jiayuan Technology are experiencing tight capacity and plan to expand production, indicating a healthy industry utilization rate [1][7]. Investment Opportunities - **Recommended Companies**: The call suggests focusing on companies such as CATL, Yiwei Lithium Energy, and Tianqi Lithium, which are well-positioned to benefit from the current market dynamics [2][11]. - **Market Recovery**: The lithium battery sector is seen as a favorable investment opportunity due to policy guidance and fundamental recovery, with a notable correction in irrational pricing within the industry [3][11]. Additional Important Insights - **Policy Changes in the EV Sector**: Recent policies aimed at improving competition in the domestic new energy vehicle supply chain are expected to enhance operational quality across the industry [1][9]. - **Future Outlook for U.S. Energy Storage**: The demand outlook for the U.S. energy storage industry in 2025 and 2026 is optimistic, driven by increased policy support and growing demand for green energy solutions [8].

Group 1 - The National Development and Reform Commission and the State Administration for Market Regulation are soliciting opinions on the draft amendment to the Price Law, which aims to improve the identification standards for low-price dumping and regulate market price order, addressing "involution" competition [1] - The "anti-involution" policy is expected to be a key driver for the long-term profit recovery in the new energy industry as it progresses [2] - The Penghua CSI Science and Technology Innovation Board New Energy ETF (588830) is the first ETF product in the market focusing on both the "Science and Technology Innovation Board" and "New Energy" sectors, tracking the CSI Science and Technology Innovation New Energy Index [1] Group 2 - In May, the domestic photovoltaic installed capacity surged to 92.92 GW, driven by the "531" rush installation node, marking a historical monthly record [2] - The supply side still faces capacity pressure, and the government has reiterated the need to address "involution" competition, which is expected to enhance supply-side expectations starting from the end of June [2] - The current state of profitability in the photovoltaic and lithium battery sectors is at a low point, with photovoltaic losses being particularly significant, indicating that "anti-involution" policies could be crucial for long-term profit recovery in the new energy sector [2] Group 3 - Penghua Fund is actively participating in the construction of the science and technology innovation market, aiming to build a product matrix called "Science and Technology China · Lighthouse Fund" [3] - The expansion of the "Science and Technology China · Lighthouse Fund" is rapid, with new products being launched in both fixed income and equity sectors, including the Penghua CSI AAA Technology Innovation Company Bond ETF and various thematic ETFs [3] - The introduction of sector-specific ETFs, such as those focused on biomedicine and chips, provides investors with robust tools to capture diverse investment opportunities in the science and technology innovation board [3]