According to Zhithong Finance APP, Central China released a Research Report stating that the performance of the Lithium Battery Sector in November outperformed the CSI 300 Index, mainly due to the introduction of macro policies, subsequent related policy expectations, and changes in market style. Considering domestic and international industry dynamics, price trends in segmented areas, monthly sales, and industry development trends, the overall prosperity of the Lithium Battery Industry continues to rise, with a short-term focus on monitoring upstream raw material price trends, monthly sales, and the implementation of industry regulations. Taking into account industry-related policy statements, raw material price trends, sector performance, current market valuation levels, and future growth expectations for the industry, it is recommended to continue paying attention to investment opportunities in this sector in the short term, while closely monitoring index trends and market styles.

In November, the sales of New Energy Vehicles in China continued to show high growth.

In November 2024, the sales of New Energy Vehicles in China reached 1.512 million units, a year-on-year increase of 47.37% and a month-on-month increase of 5.74%, with November's monthly sales accounting for 45.60%, mainly due to the continued effects of the replacement policy and the improved cost-performance ratio of new energy vehicles. In October 2024, the installed capacity of power batteries in China was 59.20 GWh, a year-on-year increase of 51.02%, with ternary material installed capacity accounting for 20.61%; Contemporary Amperex Technology, BYD, and Zhongxin Innovation ranked the top three.

Upstream raw material prices fluctuated.

As of December 11, 2024, the price of battery-grade lithium carbonate is 0.076 million yuan/ton, an increase of 2.70% compared to early November 2024; lithium hydroxide price is 0.072 million yuan/ton, up 1.41% from early November, and both are expected to fluctuate in the short term. Cobalt electrolyte price is 0.1775 million yuan/ton, up 1.43% compared to early November, with short-term expectations of fluctuations; lithium cobalt oxide price is 0.138 million yuan/ton, down 4.83% from November; the price of ternary 523 Cathode Material is 10.72 yuan/ton, down 1.24% from early November; lithium iron phosphate price is 0.0355 million yuan/ton, up 5.03% from early November, with short-term overall fluctuations. The price of lithium hexafluorophosphate is 0.061 million yuan/ton, up 11.93% from early November, with a focus on monitoring lithium carbonate price trends; the price of Electrolyte is 0.0191 million yuan/ton, up 4.30% from early November, with short-term fluctuations expected.

Central China believes that in the medium to long term, the development prospects of the domestic and international New Energy Vehicle Industry are certain, and the sector is worthy of close attention. It is also expected that individual stock performance and trends will diverge, and it is recommended to continue focusing on leading companies in segmented areas.

Risk Warning: The enforcement of industry policies is weaker than expected; significant price fluctuations in market segments; sales of New Energy Autos are below expectations; increased industry competition; progress in Lithium Extraction from Salt Lakes exceeds expectations; systemic risks.