Hong Kong stock concept tracking | No. 58 document suspended lithium battery full industry chain ushered in the reversal cycle (attached concept stocks)

According to the Ministry of Commerce: "China will temporarily suspend the export control measures announced on October 9 for one year, and will study and refine specific plans." The content of the previous Document 58 for control includes: 1. Lithium battery cells with energy density of over 300Wh/kg, as well as mid-to-late-stage lithium battery equipment; 2. Third-generation or above iron lithium cathode materials, ternary precursors, lithium manganese-based materials, and related equipment and processes; 3. Negative electrode and fast charging negative electrode technology, silicon-carbon CVD, etc. The core of the document is to restrict the export of competitive lithium battery industry chain technologies. The suspension of these restrictions further demonstrates the global competitiveness of China's lithium battery industry chain. The demand for data centers brought about by the global development of AI has reached a tipping point. The triple drive of vehicles, energy storage, and AI is leading to high growth in batteries. With the easing of restrictions, companies will have smoother access to international markets, benefiting the entire industry chain. Looking at the demand growth over the next 26 years, it is much faster than the supply growth of materials. 6F has been continuously rising in price for several weeks, and iron lithium and separators have also begun to report price increases. The lithium battery industry chain has been experiencing prolonged losses since 23 years, but there is significant profit elasticity after the price increases. Institutions believe that the demand for lithium batteries, especially for energy storage, continues to exceed expectations. The core product 6F has increased by more than 50% since September (now exceeding 87,000 RMB/ton). The bottom range of lithium prices has already been reached, and both from a supply-demand perspective and a short-term catalytic perspective, the economic viability of energy storage is expected to accelerate demand (monthly demand has reached over 120,000 tons). It is not overly pessimistic to focus only on the penetration rate bottleneck of power batteries. More importantly, destocking is a real demand validation, and the positive feedback loop of the industry chain has arrived. Hong Kong-listed companies related to the lithium battery industry chain include: Battery cells and materials: Contemporary Amperex Technology (03750), BYD Company Limited (01211), Jiangsu Lopal Tech. Group (02465), CALB (03931), Ruipulan (00666), SHUANGDENG (06960), etc.; Lithium ore: Ganfeng Lithium Group (01772), Tianqi Lithium Corporation (09696)