[hot stocks] Lithium Battery stocks are expected to increase in performance growth in 2021.

SMM12 March 8: lithium battery stock prices continued to strengthen, Huazi Technology, Tianji shares, Tianci materials rose by the daily limit; Cunninghamia lanceolata shares, Nebula shares, Dangsheng Technology rose more than 7%.

The demand for lithium batteries is improving to drive the upstream raw material market. The price of lithium carbonate has been rising recently, and some orders for electric carbon are being negotiated this week, and the high price is expected to rise to at least 46000 yuan / ton. Some large lithium salt factories in Jiangxi and Sichuan have raised their quotations to 50,000 yuan / ton in the first quarter of next year.

Average price of SMM lithium carbonate

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While the price of industrial-grade lithium carbonate rises too fast, downstream inquiry increases, replenishment sentiment deepens, some material factories quasi-electric carbon 45000 yuan / ton transaction lock volume for the end of the year inventory preparation, prices still have an upward trend; Qinghai quotation rose across the board, but there is no deal for the time being, it is expected that the contract will be signed gradually next week, and the transaction price will go up.

According to the analysis of Zhongyuan Securities, the global new energy vehicle industry continues to make progress, and the consensus on carbon emission reduction is the long-term driving force for the development of the industry, and the global new energy vehicle has developed into a dual market-driven and product-driven market in China and Europe. It is expected that the global new energy vehicles will continue to grow from 2020 to 2021. The proportion of new energy vehicles in China will rise to 20% in 2025. It is expected that the sales of new energy vehicles in China will slightly increase to 1.25 million in 2020 compared with the same period last year, and will increase by about 40% to 1.75 million in 2021.

Combined with the fact that the price of upstream raw materials has hit bottom, China has a significant advantage in the power battery industry chain. According to the sales forecast of smartphones and new energy vehicles, the overall performance of the lithium battery sector is expected to grow in 2020 and increase in 2021. In 2021, we will focus on five main investment lines: first, the leader in the subdivision of key materials of power lithium battery and lithium battery; second, the domestic supply chain of Tesla; third, the industrial chain of electrolyte and lithium iron phosphate; fourth, the supply chain of lithium power equipment; fifth, investment opportunities after cross-border integration of new energy vehicles, energy and transportation.