Guojin Securities: Lithium battery production in June remains strong.

Guojin Securities research report stated that the production prosperity of lithium batteries in June remained at a high level, with a month-on-month increase of 1%-6% and a year-on-year increase of 49%-66%. From January to June 2026, the pre-production accumulation of batteries/positive electrodes/negative electrodes/separators/electrolytes increased by 46%/49%/47%/53%/59% respectively compared to the same period last year, with electrolytes and batteries both increasing by over 60% year-on-year. Overall, in June, the production of the lithium battery industry chain continued to grow on top of the high base following a noticeable rebound in May, with the short-term momentum shifting from rapid escalation to steady high level. This reflects the continued resilience of downstream demand and the industry chain's prosperity remaining at a high level. In May, the price differentiation in the lithium battery industry chain continued, with overall performance showing strong support for upstream costs and weak transmission of price increases to the middle and lower reaches. Price increases mainly came from supply disruptions and rising raw material costs, with lithium salts, nickel salts, and phosphorus-based materials showing relatively strong performance. Although there is support from battery, energy storage, and ternary pre-production on the demand side, it mainly reflects essential demand and has not led to smooth price increases throughout the entire chain. Therefore, prices in the middle reaches, such as positive electrodes and electrolytes, have mostly seen small increases, with the increase being significantly weaker than that of upstream raw materials. Conversely, segments with quicker supply recovery or greater inventory pressure continue to be under pressure, with DMC and low-sulfur petroleum coke prices falling. Overall, price differentiation in the lithium battery industry chain in May remains the main trend.