Huatai Securities: Optimistic about the current lithium-ion price increase cycle, while also optimistic about the industrialization trend of sodium batteries and solid-state batteries with new technologies.

Huatai Securities pointed out that Xindash Li-ion released the July pre-production data for the lithium battery industry chain. Among the sample companies, battery production in July reached 181.4 GWh, an increase of 3.2% compared to the previous month. The total amount of positive electrode reached 237,000 tons, an increase of 6.2%; the negative electrode reached 199,000 tons, an increase of 4.5%; the separator reached 2.21 billion square meters, an increase of 1.4%; and the electrolyte reached 13.3 thousand tons, an increase of 6.8%. With the continued peak season effect, strong demand for energy storage domestically and internationally, and the continuous acceleration of global electrification of automobiles, coupled with the year-end export tax rebate for export and the peak season for energy storage grid connection, it is expected that production in the second half of the year will accelerate. We reiterate our optimism about the current lithium battery price increase cycle and remain optimistic about the trend of sodium batteries from 1 to N production and the industrialization of solid-state battery new technologies.