Takeaways

• Copper and nickel prices have risen sharply recently with an acceleration following the PBoC's announcement, but lithium is lagging behind.
• Decoupled from lithium prices, lithium miners Ganfeng and Tianqi rallied by 21% and 28% respectively over the last week.
• The suspension of lithium production by CATL in Jiangxi is expected to lead to an 8% reduction in China's lithium carbonate output, potentially contributing to balancing supply and demand.
• Prices for battery raw materials have significantly decreased compared to 1-2 years ago, driving cell costs to historic lows.
• In such a context, it seems important to us to recall that the current strategic focus of major Chinese battery midstream manufacturers is:
• To pursue profits in overseas markets and
• Explore the potential of LFP technology.
  
• At the World New Energy Vehicle Conference, CATL's Chairman and CEO, Robin Zeng, introduced the concept of "Zero-Carbon New Infrastructure" as a means to create new opportunities for climate action.
• BYD valuation multiples remain very attractive, including a 2025 EV/Sales multiple of 0.8x and an EV/EBIT of 13.3x (CATL trades at 12.8x) versus respectively 7.0x and 73.6x for Tesla.