The lithium battery sector generally rises. As of publication, Honbridge (08137) increased by 7.88%, Ganfenglithium (01772) rose by 7.18%, Tianqi Lithium Corporation (09696) rose by 2.76%, and Chaowei Power (00951) and Leoch Int'l (00842) followed suit.
On the news front, Soochow Securities released research reports indicating strong local demand, with China still the most certain market for electric vehicles. Overseas demand is expected to accelerate in 2025. The capital expenditure of the main industry chain began to decrease. From the second half of 2024, the strong will continue to be strong, small factories will gradually exit, the supply-demand pattern will improve, and the bottom of the industry's big cycle will become clear, and the industry chain will regain its growth potential. The bank is bullish on Q3 peak production, Q1 profit bottoming out, stable Q2 prices, and a partial low stock price rebound, coupled with the improvement of capacity utilization rates. It is expected that Q2 profit can be maintained stable and the supply-side reform and expansion will slow down, and 2025 will see a reversal of price certainty.
The bank expects global electric vehicle sales to increase by 20% to nearly 16 million in 2024, and to slightly accelerate to 23% in 2025, with sales approaching 20 million, corresponding to 13,00/1,650 GWh of dynamic and storage battery demand growth of 31%/23%.