☆ Securities Star

Weekly Report on the New Energy Vehicle Industry

According to Shanghai Metals Market, this week's market transactions have shown a notable characteristic of "active trading during price declines," with downstream purchasing enthusiasm increasing as prices fall. Due to significant downstream purchases, inventory levels among traders have notably decreased.

Among upstream lithium salt producers, there is a strong sentiment of holding prices firm and withholding inventory in anticipation of future price increases. However, there has been an increase in some enterprises that previously engaged in high-level hedging selling off individual orders to downstream buyers.

For downstream material producers, as prices continue to decline, their enthusiasm for inquiring and purchasing remains high. Initially, purchases were primarily driven by immediate needs for replenishment. As prices have dropped further, the willingness to buy has intensified, with a gradual increase in the intention to replenish and stockpile inventory.

01. Institutional Perspectives

Guosheng Securities believes:

Looking ahead to 2026, automakers are actively launching new models, and with policy support, domestic demand remains on a solid footing. Benefiting from the active expansion of major automakers in overseas markets and influenced by international dynamics, the narrative of overseas expansion is strengthening, with export sales growth expected. Full-year automotive sales are secure. In the short term, focus on the pace of new model launches and marginal sales trends. In the medium to long term, the continuous validation of the intelligence and globalization logic of leading automakers is expected to drive continuous improvements in market share and profitability.

Central China Securities points out:

Recently, implementation details for trade-in programs have been continuously rolled out under a national unified framework and further enhanced by local governments. It is expected that domestic demand will undergo marginal recovery and improve the model mix, shifting towards mid-to-high-end and new energy vehicles. Meanwhile, for the commercial vehicle sector, the Ministry of Transport has issued implementation details to support full-year domestic demand and structural upgrades for heavy trucks and buses. The construction of a power battery recycling system is entering an accelerated phase, with the industry transitioning from "policy-driven" to "market and regulatory dual-driven." Exports continue to thrive with structural optimization, with cumulative exports from January to April increasing by 61.5% year-on-year, and new energy vehicles accounting for over 40%, becoming a core engine for offsetting domestic demand.

It is recommended to focus on two main themes: First, independent leading vehicle manufacturer (automakers) and parts companies with global distribution channels, production capacity, and product competitiveness. Second, continue to pay attention to the intelligent and recycling industry chains, including companies involved in intelligent driving, robots, and liquid cooling core components, as well as the power battery recycling industry chain.

02. Macro Events

Comprehensive Investigation into Safety Hazards in New Energy Vehicles! Five Key Areas Highlighted

On May 21, the Equipment Industry Development Center of the Ministry of Industry and Information Technology issued the "Notice on Conducting Safety Hazard Investigations for New Energy Vehicles in 2026" (hereinafter referred to as the "Notice"), organizing safety hazard investigations for new energy vehicle products.

The Notice outlines five aspects of the investigation work, including: product quality and safety investigations, operational monitoring safety investigations, after-sales service safety investigations, safety accident investigations, and self-inspections of the construction of new energy safety systems.

Among them, the power battery system and the overall quality of new energy vehicles are considered key directions for safety investigations. The Notice specifically mentions that if three or more fire incidents occur in the same vehicle model, enterprises should compile information on the product configurations and technical characteristics of the relevant models, formulate safety hazard investigation plans for those models, and implement disposal measures.

MIIT: Deepen Implementation of the "AI + Manufacturing" Special Initiative to Boost Potential and Capacity in Emerging Industries Such as Intelligent Connected New Energy Vehicles

Li Lecheng, Minister of the Ministry of Industry and Information Technology and leader of the Ministry's Employment Promotion Work Leading Group, presided over the 2026 plenary meeting of the Ministry's Employment Promotion Work Leading Group on May 19. The meeting emphasized the need to consolidate efforts in promoting employment and to implement more effective measures to ensure success in various tasks. Focusing on "stabilizing growth and expanding capacity," the meeting stressed the importance of solidifying the foundation of employment.

Implementing in detail the new round of work plans for stabilizing growth in ten key industries, deepening the implementation of high-quality development initiatives for key manufacturing industry chains, and the "AI + Manufacturing" special initiative, the meeting highlighted the need to stabilize and expand employment in traditional manufacturing sectors such as light industry and textiles, while boosting potential and capacity in emerging industries such as intelligent connected new energy vehicles, high-end equipment, and aerospace, thereby consolidating the foundation of employment and exploring new employment spaces.

Tang Wenkang, Director of the Shanghai Municipal Commission of Economy and Informatization: Promote the Entry of 100,000 Humanoid Robots into Factories by the End of the "15th Five-Year Plan"

On May 18, at the Shanghai special press conference titled "Starting the '15th Five-Year Plan'," Tang Wenkang, Director of the Shanghai Municipal Commission of Economy and Informatization, proposed that, facing the "15th Five-Year Plan," Shanghai will promote the intelligent transformation of the manufacturing industry. Focusing on key industries such as integrated circuits, high-end equipment, and automobiles, and led by ten model enterprises, the plan is to integrate embodied intelligence, industrial intelligent agents, industrial language materials, and intelligent computing cloud platforms to cultivate intelligent native factories. The goal is to promote the entry of 100,000 humanoid robots into factories by the end of the "15th Five-Year Plan" and achieve an application penetration rate of intelligent agents in industrial enterprises above a certain scale exceeding 80%.

03. Industry News

National Energy Administration: As of the End of April, China's Total Electric Vehicle Charging Infrastructure (Guns) Reached 21.955 Million, Up 47.4% Year-on-Year

On May 21, the National Energy Administration released data on electric vehicle charging facilities across the country, showing that as of the end of April 2026, China's total electric vehicle charging infrastructure (guns) reached 21.955 million, a year-on-year increase of 47.4%.

Among them, there were 4.907 million public charging facilities (guns), a year-on-year increase of 29.6%. The total rated power of public charging piles reached 237 million kilowatts, with an average power of approximately 48.38 kilowatts. There were 17.048 million private charging facilities (guns), a year-on-year increase of 53.5%, and the installed electrical capacity for private charging facilities reached 149 million kilovolt-amperes.

Inventory of the National Passenger Car Industry Reached 3.54 Million Units at the End of April

On May 19, Cui Dongshu, Secretary-General of the China Passenger Car Association, stated in an article that the inventory of the national passenger car industry reached 3.54 million units at the end of April, an increase of 90,000 units from the previous month and 40,000 units from April 2025, forming a trend of continuous inventory growth. Among them, manufacturer inventory accounted for 29.8%, which is relatively high.

The optimism level for April was 36%, and the satisfaction level after April at the beginning of May was 7%. Expectations were low, but satisfaction was even worse, mainly due to the significant impact of high fuel prices. The team's optimism for the market in May dropped to 27%, which is a relatively low level of market optimism recently. Expectations continue to be adjusted downward without turning more optimistic.

China Leads the World in Automotive Patent Disclosures, with an Average Annual Growth Rate of 17.1% in the New Energy Sector

On May 16, the China Automotive Technology and Research Center released the "Ten-Year Development Report on Intellectual Property in the Automotive Industry." The data shows that China has consistently led the world in automotive patent disclosures over the past decade, far surpassing countries and regions such as the United States, Japan, and Europe.

Among them, the number of patent disclosures in the new energy vehicle sector increased from over 50,000 in 2016 to over 110,000 in 2025, with an average annual growth rate of 17.1%. Patents for intelligent connected vehicles increased from 44,000 to 93,000 in 2025, with an average annual growth rate of 11.6%. Chinese automotive companies' overseas patent layouts now cover more than 50 countries and regions.

04. Company Updates

Hesai Secures Global L3 Order from Mercedes-Benz, to be Produced at Thai Factory

On May 19, Hesai Technology announced that it has become a strategic lidar partner for Mercedes-Benz and has been confirmed as a supplier for its L3 autonomous driving models. The new supply agreement signed will fully support Mercedes-Benz's vehicle projects in European and Chinese markets, with the required production capacity to be provided by Hesai's "Galileo" manufacturing center in Thailand.

Starting at 409,800 Yuan, the Tengshi N9 Flash Charge Version Goes on Sale

On May 18, BYD's Tengshi N9 Flash Charge Version went on sale, positioned as a "technology-driven flagship SUV." Three models are offered, with prices starting at 409,800 Yuan. The vehicle is equipped with a second-generation blade battery, offering a pure electric range of 420 kilometers and a combined range of 1520 kilometers. In terms of charging efficiency, official data shows that the vehicle can be charged from 10% to 70% in just 5 minutes and up to 97% in 9 minutes.

In terms of power configuration, the Tengshi N9 Flash Charge Version is equipped with Yi Sanfang's triple-motor independent drive technology, achieving a zero-to-100 km/h acceleration time of 3.7 seconds. It is also equipped with "Yunqian-A" closed dual-chamber air suspension and an intelligent anti-carsickness system. In terms of intelligence, the new vehicle is equipped with the Tian Shen Zhi Yan 5.0 end-to-end large model assisted driving system, which is said to generate over 190 million kilometers of training data daily.

Gotion High-Tech Unveils Latest Progress on Solid-State Batteries: Energy Density of 400Wh/kg, 2GWh Production Line Under Construction

On May 17, Gotion High-Tech announced the latest progress on solid-state batteries at its 15th Global Technology Conference, upgrading cell technology to achieve an energy density of 400Wh/kg. Currently, the company is constructing a 2GWh production line for solid-state batteries and has already connected with customers for multiple scenarios. According to the plan, Gotion High-Tech's annual production capacity of lithium sulfide will be 300 tons this year, 20,000 tons in 2027, and 50,000 tons in 2030 to meet the demand for 150GWh of solid-state batteries.

05. Secondary Market

Industry Performance

Industry Valuation

New Energy Vehicle Sales

06. Raw Material Prices

Spot Prices of Lithium Compounds

Positive Electrode Material Prices

Electrolyte Prices

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