Central China: lithium battery volume and price rise in sync, short-term attention to block investment opportunities

Central China released a research report stating that the performance of the lithium battery sector in August was stronger than the Shanghai and Shenzhen 300 Index, mainly due to the market style switch, continuous growth in new energy vehicle sales, and the performance of the lithium battery sector related to CKH HOLDINGS solid-state battery developments. In the short term, it is recommended to continue to focus on sector investment opportunities, while closely monitoring index trends and market styles. In the medium to long term, the prospects for the development of the new energy vehicle industry at home and abroad are promising, and the sector deserves special attention. It is expected that individual stock performances and trends will also differentiate, and it is recommended to continue focusing on leading companies in segmented fields. Key points from Central China: The performance of the lithium battery sector index in August was stronger than the Shanghai and Shenzhen 300 Index. In August 2025, the lithium battery index rose by 13.23%, the new energy vehicle index rose by 14.99%, while the Shanghai and Shenzhen 300 Index rose by 10.90%. The lithium battery index performed better than the Shanghai and Shenzhen 300 Index. In August, Shanxi Guoxin Energy Corporation's automobile sales increased year-on-year and rebounded month-on-month. In August 2025, Shanxi Guoxin Energy Corporation's automobile sales reached 1.395 million units, an increase of 26.82% year-on-year, and an increase of 10.54% month-on-month. The monthly sales volume in August accounted for 48.83%, mainly driven by continued policy encouragement and overall improvement in the cost-performance ratio of new energy vehicles. In August 2025, China's installed capacity of power batteries reached 62.5GWh, a year-on-year increase of 32.42%, with ternary materials accounting for 17.44% of the installed capacity; Contemporary Amperex Technology, BYD Company Limited, and CALB were the top three in terms of installed capacity. Overall increase in upstream raw material prices. As of September 12, 2025, the price of battery-grade lithium carbonate was 71,000 yuan/ton, up 3.65% from early August 2025; the price of lithium hydroxide was 76,800 yuan/ton, up 12.25% from early August, with short-term fluctuations expected for both prices. The price of cobalt electrolyte was 274,000 yuan/ton, up 1.48% from early August, with short-term expectations of fluctuations; the price of lithium cobaltate was 226,500 yuan/ton, up 4.38% from August; the price of ternary 523 cathode materials was 119,300 yuan/ton, up 2.67% from early August; the price of lithium iron phosphate was 34,700 yuan/ton, up 0.58% from early August with short-term fluctuations being the main trend. The price of lithium hexafluorophosphate was 55,000 yuan/ton, up 6.80% from early August, with a focus on the trend of lithium carbonate prices; the price of electrolyte was 18,800 yuan/ton, up 7.43% from the beginning of August, with short-term fluctuations expected. Maintain an "outperform market" investment rating for the industry. As of September 12, 2025, the valuations of the lithium battery and ChiNext boards were 27.58 times and 44.35 times respectively. Combining with the industry's development prospects, maintain an "outperform market" rating for the industry. In August, the performance of the lithium battery sector was stronger than the Shanghai and Shenzhen 300 Index, mainly due to the market style switch, continuous growth in new energy vehicle sales, and the performance of the lithium battery sector related to CKH HOLDINGS' solid-state battery developments. Considering the industry trends at home and abroad, the price trends in segmented fields, monthly sales volume, and industry development trends, overall industry prosperity continues to rise. In the short term, pay special attention to the price trends of upstream raw materials, monthly sales volume, relevant policies at home and abroad, and developments related to solid-state batteries. Taking into account the industry's policy statements, price trends in raw materials, sector performance, current market valuations, and industry growth expectations, it is recommended to continue focusing on sector investment opportunities in the short term, while closely monitoring index trends and market styles. In the medium to long term, the prospects for the development of the new energy vehicle industry at home and abroad are promising, and the sector deserves special attention. It is expected that individual stock performances and trends will also differentiate, and it is recommended to continue focusing on leading companies in segmented fields. Risk warnings: Industry policy implementation is below expectations; significant fluctuations in prices in segmented fields; lower-than-expected sales of new energy vehicles; increased industry competition; systemic risks.