Investment Rating - The report maintains an "Overweight" rating for the industry [7] Core Insights - The sales of new energy vehicles (NEVs) in China showed stable growth, with June 2025 sales reaching 1.329 million units, a year-on-year increase of 26.7%, resulting in a penetration rate of 45.8% [15] - The total installed capacity of power batteries in June 2025 was 58.2 GWh, reflecting a year-on-year growth of 36%, with a cumulative total of 300 GWh for the first half of 2025, up 47% year-on-year [16] - Lithium iron phosphate (LFP) battery installations saw significant growth, with June 2025 installations at 47.4 GWh, accounting for 81% of total installations, and a year-on-year increase of 50% [24] - Leading companies in the power battery sector, such as CATL and BYD, reported substantial growth in installed capacity, with CATL achieving 25.4 GWh in June 2025, a 33% increase year-on-year [38] Summary by Sections 1. New Energy Vehicle Sales - NEV sales in June 2025 reached 1.329 million units, a 26.7% increase year-on-year, with a penetration rate of 45.8% [15] - Cumulative NEV sales for the first half of 2025 were 6.937 million units, up 40.3% year-on-year, with a penetration rate of 44.3% [15] 2. Overall Power Battery Installation - The total power battery installation in June 2025 was 58.2 GWh, a 36% year-on-year increase [16] - Cumulative installations for the first half of 2025 reached 300 GWh, reflecting a 47% year-on-year growth [16] 3. Different Types of Power Battery Installations - LFP battery installations in June 2025 were 47.4 GWh, representing 81% of total installations, with a year-on-year growth of 50% [24] - In the first half of 2025, LFP battery installations totaled 243.9 GWh, also 81% of total installations, with a year-on-year increase of 73% [24] - In contrast, ternary battery installations were 10.7 GWh in June 2025, accounting for 18% of total installations, down 3.6% year-on-year [24] 4. Leading Companies' Power Battery Installations - In June 2025, CATL's battery installations were 25.4 GWh, making up 44% of total installations, with a year-on-year increase of 33% [38] - BYD's battery installations reached 12.5 GWh in June 2025, accounting for 21% of total installations, with a year-on-year growth of 17% [38] - For the first half of 2025, CATL's cumulative installations were 128.6 GWh, a 38% increase year-on-year, while BYD's were 70.4 GWh, up 39% [38]

Core Viewpoint - The article highlights the significant growth and competitive landscape of the lithium iron phosphate (LFP) battery industry in China, emphasizing the increasing market share of LFP batteries over ternary batteries due to their cost-effectiveness, safety, and evolving performance characteristics [1][3][7]. Group 1: Industry Overview - In Q1 2025, China's LFP cathode shipment reached 746,000 tons, marking an 88.9% year-on-year increase, driven primarily by demand in the power and energy storage sectors [1]. - The competitive landscape of the LFP cathode industry is characterized by a "one strong, many strong" structure, with Hunan Youneng leading the market with a share of 29.8%, followed by Wanrun New Energy, Defang Nano, Youshan Technology, and Guoxuan High-Tech, with a combined market share of 61.1% [1][3]. Group 2: Market Dynamics - The installation ratio of LFP batteries in China's power battery market reached 80.8% in Q1 2025, a 17 percentage point increase year-on-year, while the share of ternary batteries dropped to 19.2%, a decrease of 17 percentage points [3]. - The energy storage sector predominantly utilizes LFP batteries, with over 94% of installations being LFP, indicating a strong future demand for LFP technology [3][7]. Group 3: Technological Advancements - The LFP cathode has evolved through four generations, with the latest generation achieving a powder density of approximately 2.60 g/cm³ and a sheet density of about 2.75 g/cm³, enhancing energy density and performance [4][6]. - Companies are focusing on high-density LFP products, with several firms like Hunan Youneng and Wanrun New Energy making significant advancements in production techniques and partnerships to enhance product offerings [6][7]. Group 4: Future Projections - The LFP cathode shipment in China is projected to reach 3.3 million tons in 2025, representing a 36.3% year-on-year growth, with expectations to reach 7.1 million tons by 2030, indicating a compound annual growth rate of 19.6% over the next six years [6][7].

Core Viewpoint - The article highlights the significant growth in the global electric vehicle (EV) market, particularly in the sales of new energy vehicles (NEVs) and the corresponding increase in power battery installation capacity, indicating a robust trend in the industry [3][4]. Group 1: Global New Energy Vehicle Market Analysis - In the first four months of 2025, global NEV sales reached 5.39 million units, representing a year-on-year growth of 29%, which drove the power battery installation capacity to approximately 285.1 GWh, a year-on-year increase of 36% [3][4]. - China's power battery installation capacity accounted for 60.9% of the global total, with six out of the top ten companies being Chinese, showcasing the country's dominance in the sector [4][11]. - The installation capacity of lithium iron phosphate (LFP) batteries in China continues to grow, contributing to a global year-on-year increase of 63% in LFP battery installations [4]. Group 2: Power Battery Installation Capacity by Vehicle Type - The power battery installation capacity for passenger vehicles, buses, and special vehicles is detailed, with specific figures indicating the distribution among these categories [8][9]. - The breakdown of installation capacity by battery type shows that LFP batteries lead the market, followed by ternary and other types [9]. Group 3: Leading Countries in Power Battery Installation - The top ten countries for power battery installation capacity are listed, with China leading at 173.59 GWh, followed by the United States at 38.38 GWh, and Germany at 12.12 GWh [11].