The strong are always strong! Behind the market capitalization of the two lithium battery giants joining hands to reach a new high is a letter of price increase for lithium batteries?

Following yesterday's energy storage, photovoltaic, wind power, lithium power and other new energy mainline plate set off a wave of ups and downs, this morning, the new energy plate factor and the news from last night to this morning "high turn".

Overnight US stock news, as the international car rental company Hertz placed a $4.2 billion order with Tesla (bought 100000 Tesla cars), Tesla rose 12.7%, the stock price stood above $1000, and the total market capitalization broke through the trillion-dollar mark to refresh history. At the same time, it led to a big rise in other new energy vehicle concept stocks in the United States.

In the second quarter, Dan Bin, a private equity boss in the Ningde era, shouted on Weibo: I hope A shares will catch up.

With the opening of A shares in the morning, the market capitalization of the Ningde era and BYD, which stood at 900 billion yesterday, lived up to expectations, and the market capitalization was once again at a new high.

Ningde Times and BYD are important battery suppliers in Tesla's global supply chain. As early as last year, the Ningde era reached a cooperation with Tesla, which has recently been "making frequent moves" in terms of energy storage layout. After Tesla announced that major models would gradually use lithium iron phosphate line batteries, BYD is also rumored to be winning the "big order" from Tesla.

As of September 2021, a total of 39 power battery enterprises have been installed in China's new energy vehicle market. Ningde era ranked first in September, accounting for 56.5% of the domestic market share, followed by BYD, accounting for 17.8% of the domestic market share.

In early trading, BYD strongly ranked among the top 10 A shares by market capitalization. At one point, the total market capitalization reached 950 billion, not far from trillion.

This morning, a BYD battery price increase contact letter spread in the market. According to the letter, due to market changes and superimposed power production restrictions, the raw materials of lithium batteries continue to rise in 2021, the price of cathode material LiCoO2 has increased by more than 200%, the price of electrolyte has increased by more than 150%, and the supply of negative materials has continued to be tight, resulting in a substantial increase in comprehensive costs. According to the actual situation of the rise in the price of raw materials, it is decided to increase the unit price of battery products such as CO8M. Among them, the product price including tax will increase by no less than 20% on the basis of the current Wh unit price. From November 1, 2021, all new orders will sign a new contract and implement the new price.

Although insiders say the news is still being verified, it at least represents a new round of loosening in the price of the track's more resilient power batteries under the pressure of rising raw materials upstream.

Guotai Junan Dianxin team said that leading battery companies may transmit cost pressure by directly raising prices or establishing a linkage mechanism between terminal prices and the prices of major materials, such as the upward price of power battery products. the overall profitability of the industry is expected to be repaired one after another. Due to rising costs and constant product prices, the gross profit margin of power batteries declined in the first half of 2021, and the impact is expected to continue in the third quarter.

With regard to BYD, there is another news excitement: late at night on October 25, BYD announced that the Hong Kong Stock Exchange agreed to spin off its subsidiary BYD Semiconductor Co., Ltd. to the Shenzhen Stock Exchange. Data show that BYD Semiconductor and its affiliated companies currently have more than 1200 patent applications, of which more than 580 invention patents are authorized. The patent layout of the company is mainly concentrated in the technical fields such as induction unit, heating circuit, power module and so on.

In the context of the imbalance between supply and demand and domestic substitution, the agency expects the future performance of BYD Semiconductor to grow at a high speed.