Investment Opportunities in the Lithium Battery Industry

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Based on the analysis of the current production capacity level of the industry, competitive structure and profit differences, the lithium battery chain has the following characteristics:

The industry is in the final stages of large-scale capital expansion, and leading companies have the capacity to capture major market shares for the long term;

2) The competitiveness of enterprises at each level varies greatly, and leading companies maintain their competitive advantages over the long term due to overall cost leadership (materials) or differentiated advantages (lithium batteries);

3) As the industry enters a period of low growth, the guatemala number data return on equity investment in each link is also stable at 10-15%, gradually approaching the level of the cost of equity. Leading companies with stable operations will increase the dividend share and reduce the share of profit from investment in reproduction.

In the current large-scale market context, the market future of leading lithium battery companies is relatively optimistic. The main reasons are as follows:

The lithium battery industry is a technology-driven industry. In the current global intelligent, electrified and low-carbon energy transformation, lithium battery products will inevitably continue to iterate and upgrade, and leading companies' investment in R & D and new production capacity is expected to achieve a return level above the market average.