According to the Ministry of Commerce, China will suspend the export control measures announced on October 9 for one year and refine specific implementation plans. Previously, Document No. 58 regulated: ① battery cells with energy density above 300Wh/kg and mid-to-late-stage lithium battery equipment; ③ third-generation lithium iron phosphate (LFP) cathodes, ternary precursors, lithium-rich manganese-based materials, and related equipment processes; ③ anode materials, fast-charging anode technology, and silicon-carbon CVD. The core of the document was to restrict the export of competitive lithium battery industry chain technologies. The subsequent suspension further highlights China's globally leading competitiveness in the lithium battery supply chain.
The demand for data centers driven by global AI infrastructure has reached an explosive phase, with vehicles, energy storage, and AI jointly fueling high growth in battery demand. The lifting of restrictions will facilitate smoother overseas expansion for companies, benefiting the entire industry chain. By 2026, demand growth is expected to far outpace material supply growth. Lithium hexafluorophosphate (6F) prices have risen for several consecutive weeks, while LFP and separators have also recently seen upward price adjustments.
Since 2023, the lithium battery industry chain has endured prolonged losses, but post-price hikes, profit elasticity has significantly improved. Analysts note that lithium battery demand—especially for energy storage—continues to exceed expectations, with core product 6F prices surging over 50% since September (now above ¥87,000/ton). The bottom range for lithium prices has been identified, supported by both long-term supply-demand dynamics and short-term catalysts. Additionally, the economic viability of energy storage is expected to accelerate demand (monthly demand has already exceeded 120,000 tons).
Rather than focusing solely on the penetration ceiling of power batteries, attention should be paid to tangible inventory drawdowns as proof of real demand. The industry chain is now entering a positive feedback cycle.
Related Hong Kong-listed lithium battery industry stocks: - **Battery & Materials**: CATL (03750), BYD (01211), LOPAL TECH (02465), CALB (03931), REPT BATTERO (00666), SHUANGDENG (06960). - **Lithium Mining**: GANFENGLITHIUM (01772), TIANQI LITHIUM (09696).