Highlights of the Morning Meeting of Securities Firms | Accelerated Industrialization of Solid-State Batteries Leads to a Significant Increase in Lithium Demand.

Market continued to decline in the afternoon yesterday, with the ChiNext Index leading the losses. The turnover of the Shanghai and Shenzhen stock markets was 1.8 trillion yuan, a decrease of 142.4 billion yuan from the previous trading day. On the market, there was a lack of hot spots, with more stocks falling than rising, and over 4600 stocks in the entire market fell. In terms of sectors, the battery, banking, and precious metals sectors led the gains, while the Sora concept, education, media, DeepSeek, and other sectors led the declines. At the close yesterday, the Shanghai Composite Index fell by 0.93%, the Shenzhen Component Index fell by 1.61%, and the ChiNext Index fell by 1.98%. At today's brokerage morning meeting, China Securities Co., Ltd. stated that AI has led to a surge in demand for high-end passive components, presenting opportunities for the development of related metal new materials; CICC pointed out that the long-term global antimony supply and demand imbalance is expected to continue, and the central price of antimony is expected to rise; CITIC SEC believes that the industrialization of solid-state batteries will lead to a significant increase in lithium demand. China Securities Co., Ltd.: AI Drives Surge in Demand for High-End Passive Components, Related Metal New Materials Opportunities China Securities Co., Ltd. stated that the current consumer electronics industry is recovering, with industry sentiment improving. The "old-for-new" policy is driving the replacement of large markets, and with the development of new energy vehicles and AI, the demand for passive components is increasing significantly. The amount of MLCC used in new energy vehicles is six times that of traditional fuel vehicles, and the demand for MLCC in AI servers, AI PCs, AI smartphones, etc. has increased by about 100%, 40%-60%, and 20%, respectively. There are high-performance requirements such as higher power, higher frequency, higher reliability, and smaller size. AI servers require GPU chip inductors to meet requirements such as higher power, smaller size, and lower heat dissipation, while the quantity of inductors needed has significantly increased. The recovery of demand in the consumer electronics industry is driving resonance with new consumption catalyzed by AI. The quantity and performance requirements of passive components have increased significantly. It is estimated that the average annual growth rate of MLCC and chip inductors in the AI field by 2030 will exceed 30%. It is recommended to focus on investment opportunities in the passive components and upstream raw materials industries, especially recommend integrated enterprises upstream and downstream to fully enjoy the industry chain upgrading dividend. CICC: Long-Term View on Global Antimony Supply and Demand Imbalance Continuing, Central Price of Antimony Expected to Rise CICC pointed out that in the long term, the global antimony supply and demand imbalance is expected to continue, and the central price of antimony is expected to rise. Benefiting from the continued growth in new installed capacity of photovoltaics and the increase in the penetration rate of double-glass modules, the amount of antimony used in photovoltaic glass is expected to continue to grow. The implementation of the "old-for-new" policy is expected to drive growth in demand for electrical equipment, leading to an increase in the amount of antimony used in flame retardants. Against the backdrop of the relatively rigid supply of global antimony ore, it is expected that the antimony supply-demand gap in 2024-2027 will be -0.9, -1.3, -1, -1.4 thousand tons, accounting for -6%, -8%, -6%, -9% of demand, and the supply-demand imbalance may continue, with the central price of antimony expected to rise. CITIC SEC: Industrialization of Solid-State Batteries Speeds up, Leading to Significant Increase in Lithium Demand CITIC SEC believes that solid-state batteries, with their excellent performance, are expected to expand the application scenarios of lithium batteries, with global solid-state battery shipments expected to exceed 600GWh by 2030. The application of sulfide solid electrolytes, metallic lithium negative electrodes, and lithium-rich manganese-based positive electrode materials is expected to drive the lithium consumption of solid-state batteries to more than double that of existing batteries. It is estimated that by 2030, the global solid-state battery industry will demand more than 550,000 tons of LCE, driving a 5% increase in global lithium carbonate demand. It is recommended to focus on: 1) companies involved in the production of metallic lithium; 2) companies involved in the production of sulfide solid electrolytes; 3) companies involved in the production of new types of lithium battery positive electrode materials. This article is reprinted from "Cailianshe." GMTEight Editor: Huang Xiaodong.