The new energy sector has once again made headlines! According to the latest data released by the China Association of Automobile Manufacturers (CAAM) on November 11, China's new energy vehicle (NEV) production and sales maintained strong growth from January to October this year. In terms of exports, NEV shipments reached 2.014 million units, marking a year-on-year increase of 90.4%.

At the 12th China (Suzhou) Battery New Energy Industry International Summit Forum held on November 11, Chen Yubi, General Manager of Nuode Investment, stated that the copper foil industry for anode current collectors has begun recovering this year, with the entire lithium battery copper foil sector now experiencing overwhelming demand.

Citigroup analysts noted in a recent report that the recent momentum in lithium batteries is driven by robust demand rather than supply disruptions, with growing confidence in battery demand over the coming years. Market focus has shifted to energy storage systems (ESS), and top lithium iron phosphate cathode producers are operating at full capacity to meet this demand.

**Three Major Highlights in Lithium Batteries** Data from CCTV News shows that from January to October, China's automobile production and sales reached 27.692 million and 27.687 million units, respectively, both up over 10% year-on-year. Notably, NEV production and sales hit 13.015 million and 12.943 million units, rising 33.1% and 32.7% year-on-year. In October, NEV sales accounted for 51.6% of total new vehicle sales for the first time. NEV exports surged 90.4% year-on-year to 2.014 million units.

Chen Shihua, Deputy Secretary-General of CAAM, attributed the strong NEV growth to domestic policies such as subsidies for vehicle trade-ins and the upcoming halving of NEV purchase taxes next year, which has spurred early purchases. Experts also highlighted continuous improvements in product offerings, technological advancements, and charging infrastructure as key drivers.

At the same forum, Chen Yubi of Nuode Investment noted that the copper foil industry had been struggling with losses from Q4 2023 until this year's recovery. He expects further technological breakthroughs in copper foil production, signaling a promising future for the sector.

Lithium carbonate futures extended gains after a 7% rise in the previous session, with spot prices now at levels last seen in late August but still 85% below 2022 peaks. Citigroup analysts emphasized that strong demand, not supply issues, is fueling the rally, with ESS emerging as a major focus. The bank predicts ESS will account for one-third of total battery demand by 2030, up from 20% last year, while overall battery demand is projected to grow 31% by 2026.

**Strengthening Energy Storage Expectations** Since 2025, prices for key lithium battery materials have stabilized or risen, though lithium carbonate-related materials remain under pressure. Electrolyte prices rebounded sharply due to supply-demand imbalances, with lithium hexafluorophosphate up 90.4% year-to-date at CNY 119,000 per ton as of November 7, and electrolytes rising 44.33%.

In the first three quarters of 2025, the lithium battery sector reported revenue of CNY 1.78 trillion, up 12.81% year-on-year, with power battery installations reaching 494.10 GWh (+42.52%). Energy storage demand exceeded expectations, with shipments hitting 430 GWh (+99.07%), accounting for 34.15% of total lithium battery shipments (up from 28.51% in 2024).

On November 10, China's National Development and Reform Commission and National Energy Administration issued guidelines to promote renewable energy integration, proposing innovative pricing mechanisms and including new energy storage in capacity pricing policies—a first since the coal power capacity pricing mechanism was introduced in November 2023.

Huayuan Securities believes energy storage, as a key flexible resource in power system reforms, is entering a critical phase of policy support and business model refinement, with improving returns likely sustaining growth. Huaan Securities highlighted strong global energy storage demand, rising battery cell prices, and policy tailwinds in China and Europe, recommending focus on large-scale and overseas residential storage opportunities.

**Solid-State Battery Developments** The sector saw a flurry of conferences, including the 12th ABEC 2025 in Suzhou (November 11–13) and the 2025 World Power Battery Conference in Yibin (November 12–13), where experts like Ouyang Minggao and Huang Xuejie will discuss breakthroughs in solid-state battery technology.

CITIC Securities noted that solid-state battery advancements and order momentum are pivotal for lithium battery equipment firms, with mid-term evaluations expected in November. Leading battery and automakers may soon launch new tenders, signaling potential year-end rallies for the sector.