CITIC Construction Investment: Optimistic about the investment value of lithium battery equipment and solid-state battery sectors

A CITIC Securities research report says that high oil prices are accelerating the global electrification trend, and strong conditions in the lithium battery sector are boosting equipment demand. With tensions in the Middle East escalating and navigation through the Strait of Hormuz becoming obstructed, geopolitical conflicts may keep international energy prices represented by crude oil at relatively high levels for the long term. Lithium batteries, as an emerging power source and energy storage solution, stand to benefit significantly. Major battery companies are accelerating their capacity expansion schedules, and orders for key lithium battery equipment such as stacking, coating, and formation are rapidly rebounding. At the same time, pilot-line construction for solid-state batteries is also being stepped up, and equipment tenders and deliveries are entering a concentrated period. With the current sector’s demand-driven logic clear, high oil prices and high downstream industry prosperity are creating a positive feedback effect. We continue to look favorably on the investment value of lithium battery equipment and solid-state battery sectors.