Group 1: Report Industry Investment Rating - No relevant information provided Group 2: Core View of the Report - The fundamental situation of the lithium carbonate market remains weak, but there is still uncertainty in supply - side fluctuations. It is expected that the short - term price of lithium carbonate will fluctuate. It is recommended to wait and see [1] Group 3: Summary of Related Catalogs 1. Lithium Carbonate Futures and Spot Market Data - **Prices**: On August 6, 2025, the closing prices of near - month, continuous - one, continuous - two, and continuous - three contracts of lithium carbonate futures increased compared to the previous day, with increases of 1,560 yuan/ton, 1,580 yuan/ton, 1,780 yuan/ton, and 1,780 yuan/ton respectively. The SMM battery - grade lithium carbonate average price - lithium carbonate active contract closing price (basis) decreased by 2,030 yuan/ton [1] - **Trading Volume and Open Interest**: The trading volume of the active contract of lithium carbonate futures was 425,359 lots, a decrease of 11,848 lots compared to the previous day. The open interest was 257,770 lots, an increase of 25,708 lots [1] - **Inventory**: The inventory was 15,023 tons, an increase of 580 tons compared to the previous day. The SMM lithium carbonate inventory showed that the inventory of smelters decreased by 3,427 tons, downstream inventory increased by 3,073 tons, and other inventory decreased by 1,090 tons, with a total decrease of 1,444 tons [1] - **Spreads**: The spread between near - month and continuous - one, continuous - one and continuous - two, and continuous - two and continuous - three all changed to some extent. The battery - grade lithium hydroxide and battery - grade lithium carbonate spread increased by 200 yuan/ton, and the CIF China - South Korea battery - grade lithium hydroxide and SMM battery - grade lithium hydroxide spread decreased by 271.79 yuan/ton [1] 2. Raw Material Prices - The average price of lithium spodumene concentrate (6%, CIF China) was 760 US dollars/ton, a decrease of 12 US dollars/ton compared to the previous day. The average price of lithium mica (Li2O: 1.5% - 2.0%) was 1,065 yuan/ton, a decrease of 20 yuan/ton, and the average price of lithium mica (Li2O: 2.0% - 2.5%) was 1,690 yuan/ton, a decrease of 20 yuan/ton [1] 3. Other Lithium - Related Product Prices - The prices of various lithium - related products such as lithium hydroxide, ternary precursors, ternary materials, lithium iron phosphate, cobalt acid lithium, negative electrode materials, and electrolytes all showed different degrees of change. For example, the average price of battery - grade lithium hydroxide (56.5%, micro - powder type, domestic) decreased by 80 yuan/ton, and the average price of ternary precursor 523 (polycrystalline/consumer type) increased by 50 yuan/ton [1] 4. Industry News - Indonesia is promoting regulations for electric vehicle factories, encouraging a shift from lithium batteries to silver batteries. The global battery demand is expected to reach 8,800 GWh by 2040, and Indonesia aims to seize the opportunity by ensuring raw material supply, improving supply - chain efficiency, and establishing strategic partnerships [1] - On July 31, the first batch of lithium carbonate products from the 20,000 - ton/year lithium carbonate project of Qinghai Huixin under China Salt Lake were shipped. The project has been running stably, with the first - batch product purity over 99.6%, meeting the power - battery - grade standard [1] - Xifeng Lithium Industry stated that its Mali Goulaman mine's operation has not been directly affected by the political environment, and production and transportation are normal [1] - According to Chilean customs data, Chile's lithium carbonate exports in July were 20,990 tons, with 13,633 tons exported to China, a year - on - year decrease and a month - on - month increase of 39%. Considering the shipping cycle, it is expected to arrive at Chinese ports in August and September [1]

Report Summary 1. Report Industry Investment Rating No industry investment rating was provided in the report. 2. Core View The fundamentals of the lithium carbonate market remain weak, but there is still uncertainty in supply - side fluctuations. It is expected that the short - term lithium carbonate price will fluctuate widely. It is recommended to short on rebounds [1]. 3. Summary by Relevant Content Market Data - **Futures Prices**: On August 4, 2025, the closing price of the near - month contract was 69,200 yuan/ton (+700), the closing price of the continuous - one contract was 68,920 yuan/ton (unchanged), the closing price of the continuous - two contract was 69,040 yuan/ton (-200), and the closing price of the continuous - three contract was 69,040 yuan/ton (-200) [1]. - **Trading Volume and Open Interest**: The trading volume of the active lithium carbonate futures contract was 247,898 lots (-92,772), and the open interest was 207,770 lots (-8,333) [1]. - **Inventory**: The registered warehouse receipt was 12,603 tons (+5,998), and the social inventory decreased. The inventories of smelters and other sectors decreased, while the downstream inventory was tight [1]. - **Price Spreads**: The spread between the near - month and continuous - one contracts was 280 yuan/ton (+700), the spread between the continuous - one and continuous - two contracts was - 120 yuan/ton (+200), and the spread between the continuous - two and continuous - three contracts was 0 yuan/ton (unchanged) [1]. - **Spot Prices**: The average price of SMM battery - grade lithium carbonate was 71,350 yuan/ton (unchanged), the average price of industrial - grade lithium carbonate was 69,250 yuan/ton (unchanged), and the spread between them was 2,100 yuan/ton (unchanged) [1]. Cost and Supply - **Cost**: The price of spodumene concentrate increased to 760 US dollars/ton (+5), while the price of mica remained flat [1]. - **Supply**: The production of lithium carbonate decreased last week [1]. Downstream Demand - **Last Week**: The production of lithium iron phosphate decreased, while the production of ternary materials increased. The production of power batteries decreased [1]. - **August**: The production of lithium carbonate decreased, while the production of lithium hydroxide increased. The production of energy - storage batteries increased [1]. Terminal Demand - **New Energy Vehicles**: In July, the production and sales of new energy vehicles continued to grow year - on - year but declined month - on - month. The wholesale sales of new energy passenger vehicles by manufacturers were 1.18 million, a year - on - year increase of 25% and a month - on - month decrease of 4% [1]. - **3C Products**: The shipment volume was average [1].

Core Viewpoint - The article discusses the current state and future outlook of China's anode material industry, highlighting significant growth in production and evolving product structures, while also addressing market dynamics and pricing trends [5][11]. Group 1: Industry Overview - The anode material industry in China is experiencing a recovery, with a projected shipment volume exceeding 260 million tons in 2025, representing a year-on-year growth of over 25% [5]. - In the first half of 2025, the shipment volume of anode materials reached 1.29 million tons, marking a 37% increase year-on-year, although this growth rate is lower than that of other major materials due to high inventory levels from the previous year [5][11]. Group 2: Product Structure Analysis - In the first half of 2025, artificial graphite shipments accounted for 91% of total anode material shipments, with a volume of 1.17 million tons, reflecting a 47% year-on-year increase [6]. - Natural graphite shipments, however, saw a decline of 23% year-on-year, totaling 106,000 tons, primarily due to competition from artificial graphite [6]. Group 3: Pricing Trends - In the first quarter of 2025, the price of anode-grade coke increased by over 40% compared to the previous quarter, but began to decline in the second quarter, with minimal impact on overall anode prices [9]. - The price of natural graphite has slightly decreased due to pressure from artificial graphite [9]. Group 4: Technological Developments - New generation large-capacity products are driving improvements in the capacity of artificial graphite, with several battery companies achieving a capacity increase from 350 mAh/g to 353-355 mAh/g [11]. - The industry is also seeing advancements in fast-charging capabilities, with penetration rates exceeding 15% for fast-charging products [11]. Group 5: Market Dynamics - The anode material industry is currently facing structural overcapacity, with the top five companies operating at over 70% capacity utilization, while smaller firms struggle with order shortages [11]. - It is anticipated that the head companies will rely on small and medium enterprises for processing and their own expansion to meet future capacity needs, with an overall gradual increase in industry capacity utilization expected [11].

Core Viewpoint - Xiangfenghua (300890.SZ) reported its first half-year loss since its listing, with a revenue of 688 million yuan, a 2.8% year-on-year decline, and a net profit of -2.95 million yuan, a 107.7% year-on-year decrease, indicating significant challenges in the anode materials industry due to rising raw material costs and oversupply [3][4][5]. Company Performance - In the first half of 2025, Xiangfenghua's gross margin fell to 12.35%, down 6.23 percentage points from the previous year, while operating costs increased by 4.17 percentage points [5]. - The company experienced a significant drop in its net profit, with a non-recurring net profit of -14.80 million yuan, primarily due to non-operating income of 11.85 million yuan, including government subsidies [6][7]. - Xiangfenghua's market share is in the middle of the industry, with a production capacity utilization rate of 83.43% in 2024, and it shipped 68,900 tons that year [4]. Industry Context - The anode materials industry is facing oversupply and intense competition, leading to a divergence in performance among companies, with leading firms maintaining profitability while smaller firms struggle [4][10]. - The average gross margin for major listed companies in the industry was 22.26% in 2024, highlighting the pressure on margins due to rising costs and competitive pricing [5]. - The industry has seen a significant increase in production capacity, with output rising from 450,000 tons in 2020 to 1.89 million tons in 2024, resulting in a 320% increase [9]. Market Dynamics - The price of petroleum coke, a key raw material, surged over 70% in early 2025, impacting the cost structure of anode manufacturers [7]. - Despite a slight recovery in raw material prices in the second quarter, the overall profitability of the anode industry remains under pressure due to oversupply and price wars [8][9]. - High-end products are more profitable, with companies like Zhongke Electric maintaining profitability through premium offerings, while lower-end products struggle to generate profit [10].

Core Viewpoint - The stability of costs for anode materials in power batteries is under dual pressure from raw material prices, particularly for low-sulfur petroleum coke and coconut shell carbon, which have seen significant price increases due to supply shortages and rising demand [2][3][4]. Group 1: Raw Material Price Trends - The price of low-sulfur petroleum coke, a key raw material for artificial graphite, has increased significantly since July, with a monthly average price rise exceeding 240 RMB per ton [2]. - Major oil refineries in Northeast China have announced further price increases for petroleum coke starting August 1, with increases ranging from 50 to 150 RMB per ton [2]. - Coconut shell carbon, essential for sodium-ion battery hard carbon anodes and new silicon-carbon anodes, has also seen a sharp price rise due to supply issues, with imported prices exceeding 8000 RMB per ton as of July 2025 [3][4]. Group 2: Impact on Downstream Production - The rising raw material prices have directly impacted downstream production costs, leading to increased cash flow pressure for some small and medium-sized graphite electrode manufacturers [3]. - Leading graphite electrode companies have raised prices for ultra-high power products by 3% to 5% in response to increased costs [3]. - The price surge occurs at a critical time for silicon-carbon anodes, which are expected to enter mass production, potentially affecting their cost control and industrialization process [4]. Group 3: Market Structure and Trends - Despite the challenges, artificial graphite maintains a dominant position in the market, with a total shipment of 1.29 million tons of anode materials in the first half of 2025, a 37% year-on-year increase [5]. - Artificial graphite shipments reached 1.17 million tons, a 47% increase, capturing 91% of the market share, while natural graphite shipments declined by 23% [5]. - The market is still exploring new anode materials, as evidenced by the increasing market share of alternative materials, despite the volatility in raw material prices [5].

1. Report Industry Investment Rating - The report does not provide an industry investment rating [2][3] 2. Report's Core View - The sentiment of lithium carbonate futures and spot markets fluctuates greatly, and the divergence between buyers and sellers in the spot market is large. The market is easily influenced by news. It is expected that the price of lithium carbonate will fluctuate widely. It is recommended to buy double - straddle options [3] 3. Summary According to Related Catalogs 3.1 Market Quotes - **Futures Market**: On July 29, the main contract of lithium carbonate futures fluctuated at a medium - low level. The trading volume was 744,160 lots (-261,235), and the open interest was 300,620 lots (-77,852). The prices of most contracts decreased, and the spreads between different contracts also changed. For example, the spread between the near - month and the first - continuous contract was -1,420 yuan, a decrease of 380 yuan compared with the previous day [3] - **Spot Market**: The SMM battery - grade lithium carbonate average price - lithium carbonate active contract closing price (basis) was 780 yuan, an increase of 1,530 yuan compared with the previous day. The prices of various lithium - related products such as lithium spodumene concentrate, lithium mica, and different grades of lithium carbonate, lithium hydroxide, etc., all showed different degrees of change [3] 3.2 Supply and Demand - **Supply**: Last week, the production of lithium carbonate decreased [3] - **Downstream Demand**: Last week, the production scheduling of lithium iron phosphate and ternary materials increased; in June, the production scheduling of lithium cobaltate and lithium manganate decreased. Last week, the production of power batteries increased. In terms of terminal demand, in June, although the year - on - year growth rate of new energy vehicle production and sales continued, the sales volume decreased month - on - month, and the 3C shipments were average. The production scheduling of energy - storage batteries increased in June [3] 3.3 Inventory - The registered warehouse receipts were 12,276 tons (unchanged), the social inventory was destocked, the smelters destocked, and the downstream and other inventories changed [3]

Financial Support for High-Quality Development - The People's Bank of China (PBOC) in Sanming has implemented financial services to support the high-quality development of revolutionary old areas, focusing on traditional industrial transformation, rural revitalization, and green development [1] - Since 2021, the PBOC has provided a total of 12.141 billion yuan in preferential funds, significantly boosting local economic development [1] - As of June 2023, the total loan balance in Sanming reached 266.56 billion yuan, with an increase of 96.734 billion yuan since the beginning of 2021, representing a growth rate of 52.86% [1] Support for Manufacturing Upgrades - Fujian Keda New Energy Technology Co., Ltd. is expanding its production capacity with a new production line for graphite anode materials, supported by a 100 million yuan loan from Industrial Bank Sanming Branch [2] - The loan benefits from a two-year 1% fiscal interest subsidy, reducing the financing cost for the company [2] - Since 2021, the total amount of policy-based preferential loans for technology and equipment upgrades in Sanming has exceeded 4.386 billion yuan, with a loan balance for the manufacturing sector reaching 38.969 billion yuan, an increase of 23.526 billion yuan, or 152.5% [3] Financial Support for Rural Revitalization - Fujian Liusan Seed Industry Co., Ltd. received a 30 million yuan loan from Agricultural Bank of China Sanming Branch to support its operational cash flow during the peak sales season [4] - The loan has a favorable interest rate of 2.9%, significantly lowering the company's financial costs [4] - Since 2021, the total amount of agricultural support loans issued in Sanming has reached 5.416 billion yuan, benefiting over 13,500 agricultural entities [5] Green Finance Initiatives - Sanming has a forest coverage rate of 77.12%, which supports its ecological advantages and the development of green finance [6] - The introduction of "Fulin Tickets," which are income rights certificates based on forest management, aims to promote large-scale forestry operations and attract social capital [6] - The first batch of "Fulin Tickets" was issued in early 2023, covering 20,000 acres of forest with a total value of 12.031 million yuan [6][7]

Industry Overview - The artificial graphite industry in China is experiencing robust growth driven by the global energy revolution and industrial upgrades, with a market size projected to reach 43.8 billion yuan in 2024, reflecting a year-on-year increase of 6.83% [2] - The demand for lithium battery anode materials is the primary driver of market expansion, with an expected shipment volume of 2.08 million tons of lithium battery anode materials in 2024, of which artificial graphite will account for 87% [2] - There is a steady increase in demand for specialty graphite from high-end manufacturing sectors such as aerospace and semiconductors, leading to a shift towards high value-added product structures [2] Industry Development History - The development of the artificial graphite industry in China has gone through five stages, starting from the late 19th century with the invention of artificial graphite electrodes [6] - The industry saw significant advancements in the 1970s with the successful development of high-power and ultra-high-power graphite electrodes, enhancing conductivity and corrosion resistance [7] - The period from 2010 to the present has been marked by explosive growth in demand for artificial graphite as a negative electrode material for lithium-ion batteries, particularly driven by the rapid development of electric vehicles and energy storage [7] Industry Supply Chain - The upstream of the artificial graphite industry includes raw materials such as needle coke, petroleum coke, coal tar pitch, natural graphite ore, and chemical reagents, as well as production equipment [9] - The midstream involves the manufacturing process of artificial graphite, while the downstream applications span across various sectors including power batteries, consumer batteries, energy storage, steel, chemicals, aerospace, defense, semiconductor manufacturing, lubricants, and medical devices [9] Related Companies - Key listed companies in the artificial graphite sector include Better Energy (835185), Fangda Carbon (600516), Zichan Technology (603659), and Shanshan Co., Ltd. (600884) [2] - Other relevant companies include Baotailong New Materials, Sinopec, PetroChina, and CATL, among others [2]

Industry Overview - The artificial graphite industry in China is experiencing robust growth driven by the global energy revolution and industrial upgrades, with a market size projected to reach 43.8 billion yuan in 2024, reflecting a year-on-year increase of 6.83% [1][11] - The demand for lithium battery anode materials is the primary driver of market expansion, with an expected shipment volume of 2.08 million tons in 2024, of which artificial graphite accounts for 87% [1][11] - High-end manufacturing sectors, such as aerospace and semiconductors, are steadily increasing their demand for specialty graphite, pushing the product structure towards higher value-added transformations [1][11] Industry Development History - The development of the artificial graphite industry in China has gone through five stages, starting from the late 19th century with the invention of artificial graphite electrodes [5][6] - The industry saw significant advancements in the 1970s with the successful development of high-power and ultra-high-power graphite electrodes, enhancing conductivity and corrosion resistance [5][6] - The rapid growth phase from the early 21st century to 2010 was marked by increased demand from steel and aluminum industries, leading to the domestic production of artificial graphite [6][7] Market Size - The market size of the artificial graphite industry in China is expected to reach 43.8 billion yuan in 2024, with a year-on-year growth of 6.83% [1][11] - The shipment volume of lithium battery anode materials is projected to be 2.08 million tons in 2024, with artificial graphite comprising 87% of this volume [1][11] Key Enterprises - The industry has formed a competitive landscape characterized by a few leading companies, such as BETTERRY and SANYO, which dominate the high-end market due to their technological advantages and global presence [17][19] - BETTERRY has maintained its position as the global leader in anode material shipments for 15 consecutive years, with a projected shipment volume of 345,000 tons in 2024 [19] - SANYO has established a production capacity of 700,000 tons of anode materials in China and is expanding its operations in Finland [21] Industry Trends - The artificial graphite industry is undergoing a wave of technological innovation, with companies increasing R&D investments to overcome key process bottlenecks [23][24] - Vertical integration is becoming a mainstream trend, with companies like BETTERRY and SANYO achieving full industry chain coverage from graphite mining to anode material processing [24][25] - The transition to green and low-carbon practices is becoming a mandatory requirement, with policies pushing for energy-efficient production processes and the establishment of green supply chains [26]

Core Insights - The Xichuan Advanced Manufacturing Development Zone has been recognized as a digital transformation promotion center in Henan Province due to its solid digital infrastructure and innovative transformation practices [1] Group 1: Digital Transformation and Industry Focus - The development zone covers an area of 13.03 square kilometers and hosts 184 enterprises, focusing on digital transformation in four major industry clusters: automotive parts, modern traditional Chinese medicine, new energy, and new materials [1] - The automotive parts industry, led by Xijian, includes 86 associated enterprises with a market share of 20%, primarily producing shock absorbers and various components [2] - The modern traditional Chinese medicine industry, led by Fusen Pharmaceutical, comprises 35 associated enterprises, with market shares of 35.5% for oral solutions and 91.6% for injection solutions of the same product [2] Group 2: Innovation and Support Policies - The development zone has implemented policies to support technological innovation, allocating 50 million yuan in special funds for enterprises, with the automotive parts sector receiving 60 million yuan in provincial R&D support [3] - The area has established a national-level enterprise technology center, three nationally recognized laboratories, and numerous provincial-level centers, with 38 high-tech enterprises and 21 specialized enterprises [3] Group 3: Infrastructure and Investment - The development zone employs a "management committee + company" model for financing and has developed industrial parks for automotive parts, rural revitalization, and immigration, with 390,000 square meters of standardized factories built [4] - In 2024, the 86 large-scale industrial enterprises in the development zone are projected to achieve a total output value of 7.2 billion yuan, accounting for 90% of the county's industrial output, with an industrial added value of 1.83 billion yuan [4]