Summary of Key Points from the Conference Call Industry Overview - The focus is on the **Chinese energy sector**, particularly the growth in electricity demand and supply, driven by factors such as AI, electric vehicles (EVs), and renewable energy sources [1][9][11]. Core Insights and Arguments - **Electricity Demand Growth**: China's electricity demand surpassed **1,000 TWh** last month, with expectations to reach **13,500 TWh** by 2030 and **25,000 TWh** by 2050, reflecting a **5.6% CAGR** through 2030 and **3.2% CAGR** through 2050 [1][9][57]. - **Renewable Energy Capacity**: China added over **400 GW** of power capacity last year, accounting for **70%** of global additions. The country is expected to add over **500 GW** in solar and wind capacity in 2025 alone [2][3][9]. - **Battery Storage Needs**: To support the increasing renewable energy penetration, China will require **3,300 GW** or approximately **12,000 GWh (12 TWh)** of installed energy storage system (ESS) capacity, a **30x increase** from current levels [4]. - **Grid Infrastructure Investment**: Significant investment in grid infrastructure is necessary, with **RMB 600 billion** spent last year, marking a **15% year-on-year growth** [5]. - **Nuclear Power Role**: Nuclear energy is positioned as a key alternative to coal, with investments growing by **42%** last year to **RMB 142 billion**. However, it is expected to remain less than **10%** of the power generation mix [6]. - **Decline of Coal and Oil**: Coal-fired power generation is declining, with a **2.5% decrease** in the first half of 2025. Oil consumption is expected to peak before 2030 due to the rise of EVs [7][9]. Additional Important Insights - **Electrification Trends**: By 2050, electricity is projected to account for over **55%** of China's final energy needs, up from **29%** today. Solar and wind are expected to contribute **70%** of total power supply by 2050 [9][11]. - **Emerging Demand Drivers**: New sources of power demand include data centers, transport electrification, and manufacturing sectors related to renewable energy and EV production [14][51]. - **Power Consumption per Capita**: China's per capita electricity consumption is expected to rise from **7 MWh** to around **18 MWh** by 2050, reflecting a significant increase in energy needs [34][36]. - **Investment Recommendations**: CATL is highlighted as a top pick due to its strategic position in the battery market, which is crucial for supporting renewable energy growth [9]. Valuation Comparisons - A comparison of global battery companies indicates CATL's strong market position with a target price of **CNY 360.00**, representing a **52.4%** upside from its current price of **CNY 306.18** [8][10]. This summary encapsulates the critical insights from the conference call regarding the Chinese energy sector's growth, challenges, and investment opportunities.

Report Information - Report Title: Carbonate Lithium Futures Daily Report [1] - Date: July 30, 2025 [2] - Researcher: Zhang Ping, Yu Feifei, Peng Jinglin [3] Industry Investment Rating - Not provided Core Viewpoints - The carbonate lithium futures continued to decline, with the main contract hitting a low of 68,600 during the session. After the first trading session, there was an obvious rebound in the anti - involution theme, and the decline of carbonate lithium narrowed. The spot market was resistant to decline, with the price of electric carbon dropping by 750 to 73,150. The spot was at a premium to the futures, and upstream lithium salt enterprises still showed strong price - holding willingness. There was a significant divergence in the psychological price expectations between upstream and downstream enterprises. The decline of Australian ore was greater than that of spot electric carbon, while the price of lithium mica ore was resistant to decline. The production profit of salt plants using purchased lithium spodumene expanded, while the production loss of salt plants using purchased lithium mica widened. The supply of carbonate lithium was expected to remain at a high level in the short term, and the fundamentals were difficult to support the price. The futures were expected to continue to hype the anti - involution logic, and the short - term support level of the futures was around 68,000 [11]. Section Summaries 1. Market Review and Operation Suggestions - Carbonate lithium futures dropped, and the decline narrowed after a rebound. The spot market was more resistant to decline, with the electric carbon price dropping by 750 to 73,150. Upstream enterprises had a strong price - holding intention, with a psychological expectation price range of 73,000 - 74,000 yuan, while downstream enterprises preferred to purchase through the futures premium and discount point - price model. Australian ore prices dropped by 65 to 780 US dollars per ton, expanding the production profit of spodumene - using salt plants to 2,489 yuan per ton. High - grade lithium mica prices dropped by 30 to 1,775 yuan per ton, widening the production loss of lithium - mica - using salt plants to 6,968 yuan per ton. The production volume of carbonate lithium from spodumene may further increase, while the production volume from lithium mica depends on the reduction and shutdown of relevant mines in Jiangxi. The short - term supply is expected to remain high, and the futures may continue to hype the anti - involution logic, with short - term support at around 68,000 [11]. 2. Industry News - A study by the University of Hong Kong found that aluminum impurities in the lithium - ion battery recycling process can form super - stable aluminum - oxygen bonds in the cathode crystals, trapping key metals and reducing their leachability, which challenges traditional recycling practices and emphasizes the need to redesign specific solvent processes [14]. - Two major new - energy companies achieved a breakthrough in recycling batteries by producing battery - grade lithium hydroxide from waste electric vehicle batteries. Their innovative process can extract lithium from mixed NMC and LFP black powder on one production line, improving versatility and reducing costs. The produced lithium hydroxide meets the purity standards of cathode manufacturers, which is in line with the EU battery regulations' goals of 50% lithium recovery rate by 2027 and 80% by 2031 [15].