According to the Everbright Securities Research Report, profits from lithium battery materials bottomed out and stabilized in the first quarter of 2024, and are expected to recover. Due to falling prices of upstream resources such as lithium carbonate, increased competition, and storage removal, the profitability of upstream resources and midstream materials has declined, and the cyclical aspects are particularly obvious. The battery sector benefited from falling lithium prices, and gross margin bucked the trend. Well-structured structural components and stable profitability in the three-precursor chain. Furthermore, judging from marginal changes in profitability in the first quarter of 2024, most midstream profitability fluctuations narrowed and rebounded steadily, while lithium iron phosphate, electrolytes, and anodes rebounded month-on-month. The sector as a whole showed a trend where profits bottomed out and stabilized.