CICC: We give Ningde Times an "increase" rating on A shares, the release of sodium ion products marks the arrival of the "sodium era"

Morgan Stanley released a research report stating that CATL is strategically transitioning from lithium batteries to lower-cost sodium-ion batteries. The bank believes that the release of this sodium-ion product marks the arrival of the "sodium era," especially considering its model of releasing products for immediate mass production. Although commercial scale is still limited at present, the company is expected to achieve cost parity with lithium iron phosphate batteries in the short term. With the increase in supply chain capacity over the next three years, the bank expects the rate of cost reduction to accelerate. When production capacity reaches 100GWh, prices may be more than 30% lower than lithium iron phosphate batteries. In terms of market penetration, sodium-ion batteries are expected to first make progress in the light truck, small car, and microcar passenger car sectors. Additionally, the report sees significant potential for sodium-ion technology to replace lithium iron phosphate batteries in the energy storage system market. Morgan Stanley has given CATL an "overweight" rating for A shares with a target price of 490 yuan.