Huatai Securities: The demand for energy storage is improving, low-price internal circulation is turning, and we are optimistic about the leading energy storage battery cells and integrators.

Huatai Securities research report indicates that on February 9th, the announcement of the successful candidates for the centralized procurement of 7 GWh energy storage battery cells by State Power Investment Corporation was made public. The bidding price range is approximately 0.325-0.355 yuan/Wh, with strong downstream demand performance and a recovery in battery cell procurement prices. The energy storage capacity electricity price policy can provide more stable profit expectations for energy storage stations. Under certain scenarios, with guaranteed capacity electricity prices for energy storage stations in 2/10/20 years, the project IRR can reach 5.8%/7.9%/9.2% respectively. Optimized commercial models are expected to drive central SOEs to increase investment in energy storage station construction. The current price hike in lithium carbonate is expected to lead to smoother transmission, with potential for a change in the inward folding model, and optimistic about top integrated manufacturers and battery cell factories having a stronger premium advantage.