In May, the industry chain of new energy vehicles and power batteries was extremely active. On the last day of May, the market value of Ningde Times exceeded one trillion yuan. The stock prices of many listed companies in the power battery industry chain achieved a sharp rise in that month.

In May, project investment in the field of power batteries and battery materials was also very active. According to incomplete statistics from Battery China, in the past May, the total investment of projects signed, started and put into production in China's power battery market exceeded 50 billion yuan, and the industry maintained rapid growth.

Looking back at the market action in May, there are the following characteristics:

One is that the "strength faction" in the second camp is trying to catch up. A number of top companies in the second camp continued to increase production capacity and market layout, and kept catching up with the first camp companies. AVIC Lithium Battery, Yiwei Lithium Energy, Guoxuan Hi-Tech, and Duofuoduo have all made major moves in project layout.

The second is that the layout of upstream projects in the power battery industry chain has exploded. Since the second half of 2020, most of the investment in the power battery industry chain has been concentrated in power battery companies. The production capacity layout of hundreds of GWh of domestic mainstream battery enterprises such as polyfluoride and polyfluoride, and the shortage of raw materials have begun to appear. In fact, the continuous rise in raw material prices since the second half of last year has clearly reflected the huge gap in upstream materials. Therefore, since the beginning of this year, the layout of upstream materials has begun to accelerate.

The third is that the projects of power battery enterprises "binding" upstream industrial chain enterprises are gradually increasing. In May, enterprises such as Ningde Times, Yiwei Lithium Energy, and Guoxuan Hi-Tech continued to "bind" with upstream material companies or projects, increased investment in material projects, locked in the supply of raw materials, and improved cost control capabilities. It is expected that as the demand for power batteries continues to grow rapidly in the future and the production capacity of power batteries continues to increase, there will be more and more "binding" between battery companies and upstream material companies, and more companies will build projects through joint projects with upstream companies. , to consolidate its material supply capabilities.