Dongwu Securities: Expecting approximately 35% growth in global lithium battery demand by 2026, optimistic about the copper foil sector with both volume and profit rising.

robot
Abstract generation in progress
Dongwu Securities research report indicates that, by 2026, global lithium battery demand is expected to grow by approximately 35%, with a 25%+ increase in 2027, corresponding to global lithium battery copper foil demand of 210k/1.97 million tons respectively.
On the supply side, the downward cycle of lithium battery copper foil processing fees has lasted for 4 years, with manufacturers' expansion willingness remaining low. In 2026, the effective global lithium battery copper foil capacity is 1.75 million tons, with only 210k tons added; in 2027, capacity reaches 1.98 million tons, with an additional 230k tons.
Capacity utilization rate was 93% in 2026 and will rise to 100% in 2027, with the supply and demand pattern continuing to tighten.
On the profit side, since the beginning of the year, processing fees for second-tier clients have increased by 1,500-2,000 yuan/ton, with profit per ton reaching 2,000-3k yuan.
Considering a 10k-ton CAPEX investment of 400-500 million yuan, manufacturers' target profit per ton is reasonably set at 8k yuan, still negotiating with downstream clients.
It is expected that the profit per ton could rise to 6,000-8k yuan in 2027.
The copper foil sector is expected to see both volume and profit growth, and an increase in holdings of copper foil stocks is recommended. (First Financial)
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned