Wanlian Securities Lithium Battery Industry 26-year semi-annual strategy: Seize the new cycle and focus on new technology.

Wanlian Securities released a research report stating that the lithium battery industry is expected to enter a new growth cycle in 2026, with an optimized supply-demand pattern and accelerated technological breakthroughs, leading to a positive overall development trend. The report suggests focusing on two core themes: the rebound of the cycle and technological breakthroughs. 1. Cycle rebound: Energy storage leads growth, industry profitability is expected to accelerate recovery. Demand remains high, structural optimization of power batteries, energy storage batteries open up a second growth space, and the lithium battery supply-demand pattern is expected to continue to improve. 2. Technological breakthroughs: Industrialization of solid-state batteries and sodium-ion batteries accelerate. Solid-state batteries have entered the technical verification stage, with manufacturers deploying pilot lines intensively; commercial products of sodium-ion batteries continue to be released, production scale speeds up, and are expected to drive the industry chain upgrade. Wanlian Securities' main points are as follows: Market review: Indices continue to fluctuate, with valuations remaining low Since the beginning of the year (as of June 30, 2026), the Shenwan Battery Index increased by 6.44%, the Shanghai and Shenzhen 300 Index rose by 5.55%, with the Battery Index outperforming the market by 0.89%. Due to multiple uncertainties such as market style changes, international tensions, and fluctuating lithium carbonate supply, the index has been fluctuating overall. As of June 30, 2026, the PE (TTM) of the Shenwan Battery Industry Index was 30.55 times, slightly lower than the valuation center since 2022, remaining at a relatively low level in recent years. Demand side: Energy storage leads growth, opening a new growth cycle In 2025, driven by downstream demand growth in power batteries and energy storage, global lithium battery demand rebounded, achieving high-speed growth with shipments reaching 2280.5GWh, a year-on-year increase of 47.6%. In 2026, the global lithium battery industry is expected to enter a new growth cycle and maintain stable growth. (1) Power batteries: Overall growth trend stabilizes, structural incremental highlights. In 2026, the growth rate of new energy vehicle sales is expected to remain stable. Factors such as increased energy density per vehicle, overseas demand growth, and accelerated electrification of heavy-duty vehicles are expected to be core supports for the high growth of power battery shipments. In terms of energy density per vehicle, since 2026, the average energy density per vehicle of Shanxi Guoxin Energy Corporation has continued to increase, reaching a level of around 70kWh. The increa...