When A shares opened on Monday, the new energy vehicle sector rose rapidly, with the upstream resources sector leading the way, with Rong Bai Technology and Dangsheng Technology up more than 10%, Huayou Cobalt up 9%, Hanrui Cobalt up 6%, Yiwei LiNeng up 5%, Ganfeng Lithium up 3%, and New Energy car ETF (515700) up more than 3.5%.
At the policy level, there is good news from the US stimulus bill. On November 19th, the House of Representatives passed Biden's $1.75 trillion stimulus bill (BuildBackBetterAct), which comprehensively increased the tax credits for new energy vehicles, photovoltaic wind power and energy storage. After being passed by the House of Representatives, the bill will be submitted to the Senate and is expected to be revised in the coming weeks.
The new energy policy of the United States during the Biden era continued to increase, according to Cheung Kong Securities. After taking office, Biden proposed to achieve a carbon-free power sector by 2035 and a 50% penetration rate for new energy vehicles by 2030. The tax credit under consideration is one of the ways to achieve his ambitious goal.
Prior to this, at the 26th Conference of the parties (COP26) held in Glasgow, countries outside China, Europe and the United States also made commitments to reduce coal use and accelerate the transformation of zero-emission vehicles. It shows that carbon neutralization action is being promoted around the world, and the policy side is expected to continue to increase.
On the other hand, the return of lithium electricity market today is also affected by demand and supply. The purchasing demand and stock demand brought about by the resumption of production by the cathode material factory after the power restriction is superimposed with the lithium salt inventory of the cathode material factory which is only about half a month. The third round of price increase has been started and the persistence and range are expected to be considerable.
