CITIC Securities: The overall supply and demand situation in the lithium battery industry is expected to improve in the second half of the year.

CICC Securities research report suggests that looking ahead to the second half of 2026, the overall supply and demand situation in the lithium battery industry is expected to enter a period of increased prosperity. On the demand side, with the recovery of domestic demand in China and the rise in global oil prices, the high prosperity of global power battery demand is expected to continue; in addition, factors such as diverse revenue models and new application areas are driving the continued improvement of the economic efficiency of energy storage installation, and the global energy storage sector is entering a stage of upward development driven by domestic and foreign demand resonance. On the supply side, the addition of new production capacity in the battery and midstream material sectors is mainly focused on high-end products and overseas production capacity. It is expected that the industry's supply and demand situation will further improve in the second half of 2026, with the industrial chain prices stabilizing and rising, and high-end products are expected to capture higher technology premiums. In addition, the industrialization of solid-state batteries is accelerating, which is expected to bring investment opportunities in the battery, material, and equipment sectors. Focus on high-quality top-tier companies in the supply chain with higher levels of technological differentiation and stronger cost control capabilities.