Huatai Securities: German electric vehicle subsidies favorable for the lithium battery industry chain.

The German government announced on January 19 that the federal government's climate and transformation fund will allocate 30 billion euros to provide subsidies of up to 6000 euros for households purchasing new electric cars, in order to promote the development of its electric car industry. This is Germany's second subsidy program similar to the one that ended at the end of 2023. The research report believes that the policy aims to support the development of the electric vehicle industry, and the subsidies are targeted towards pure electric vehicles and low to middle-income groups. It is optimistic about the increase in demand for lithium batteries which will boost the performance of companies in the lithium battery industry chain.