CITIC Securities stated that looking ahead to 2025, on the demand side, driven by the cycles and product strength improvement of domestic brands, the penetration rate of new energy vehicles in China is expected to continue to increase; overseas, Europe faces a critical juncture in carbon emission assessment, combined with the release of new models, is expected to stimulate the return of growth in demand for new energy vehicles. In addition, driven by the decline in raw material costs and the improvement of operational efficiency, the demand for energy storage installations is expected to grow rapidly. On the supply side, as the capital expenditure growth rate of batteries and midstream materials further slows down, leading companies in the industry chain will lead a new round of technological innovation, which is expected to further increase market share and profitability, and the industry structure will continue to optimize. It is recommended to focus on high levels of technological differentiation and stronger cost control ability, and to select top-tier supply chain companies that have further validated their core competitiveness in the previous cycle.