According to the Ministry of Industry and Information Technology's announcement on June 7, 2024, the lithium-ion battery industry maintained a growth trend from January to April 2024. According to estimates made by industry standards and associations, the total output of lithium-ion batteries in China exceeded 282GWh from January to April, an increase of 17.5% year-on-year.

In the battery sector, the national output of energy storage lithium batteries exceeded 48GWh from January to April. The installed capacity of power-type lithium batteries for new energy vehicles was about 120.4GWh. Due to the decline in the price of lithium battery materials, the price of lithium battery products has correspondingly decreased. From January to April, the total export value of lithium batteries in the country was 124.2 billion yuan, a year-on-year decrease of 15%.

According to preliminary research data from GGII, the lithium battery shipments in China in the first quarter of 2024 were 200GWh, an increase of 18% year-on-year. Among them, the shipments of power and energy storage batteries were 149GWh and 40GWh, respectively, representing a year-on-year increase of 19% and 14%.

Orient Securities research report pointed out that the bearish factors of lithium batteries have been exhausted, and valuation has hit bottom and is recovering.

As the 2023 annual report/2024 first quarter report is released, the bearish factors for lithium batteries have been eliminated, and it is more important to focus on bullish factors such as production, price and valuation. Under the comprehensive influence of multiple factors, Orient Securities believes that opportunities outweigh risks, and the repair of EPS and valuation of domestic lithium battery sector is expected to become a trend.

Leading companies in the lithium battery industry chain:

Ganfeng Lithium (01772), Tianqi Lithium Corporation (09696)