Lithium battery stocks surged, CATL and CSI Solar both signed major contracts, and domestic and international energy storage demand has reached a resonant moment!

Today, the lithium battery sector in the A-shares market experienced a strong surge, with CATL rising over 7%, driving the entire lithium battery industry chain to collectively increase.

By the close, lithium battery leader CATL rose 7.56%, with an intraday surge of 8.4%, the latest stock price at 415.6 yuan/share, and a total market value of 1.9 trillion yuan, with a single-day trading volume of 22.9 billion yuan, ranking first in A-shares. CATL's H-shares rose over 3%.

The entire lithium battery industry chain exploded, with Huasheng Lithium Battery hitting the 20% daily limit, reaching a new high, while companies like Kangpeng Technology, Taihe Technology, Yongxing Materials, Tianci Materials, and Dofluorid also saw over 20 stocks hit the daily limit.

The explosion in the lithium battery sector is attributed to the significant cooperation news between two major energy storage giants: Haibosichuang signed a ten-year strategic agreement with CATL, with cell purchases not less than 200GWh in the next three years, while CSI Solar secured a super order for 1.86GWh of energy storage in Canada.

Morgan Stanley analysts, including Jack Lu, stated in their research report that this order confirms the strong demand for global energy storage systems and the current shortage of high-end products, while highlighting CATL's champion position in the value chain. Analysts believe that under tight supply and demand conditions, CATL is likely to achieve price or profit margin premiums.

According to a previous article from Wall Street Insight, UBS pointed out in its latest research report that the demand for battery energy storage systems will become the "second growth engine" for the lithium market, expecting it to account for 22%-26% of total battery demand by 2030, equivalent to half of electric vehicle demand. The shift towards tight supply and demand is driving lithium prices to rebound from the bottom, bidding farewell to the bear market.

Guotai Junan's research report noted that the large procurement agreement between Haibosichuang and CATL demonstrates confidence in the future high growth of energy storage, coupled with the landing of CSI Solar's overseas large orders, marking a resonant moment for domestic and international energy storage demand.

CATL and CSI Solar Both Sign Major Orders

On November 12, Haibosichuang announced that it had signed a "Strategic Cooperation Agreement" with CATL, with a cooperation period lasting ten years, from January 1, 2026, to December 31, 2035. According to the agreement, from January 1, 2026, to December 31, 2028, Haibosichuang's cumulative electricity procurement will not be less than 200GWh.

According to Morgan Stanley's calculations, this annual order is equivalent to 50% of CATL's energy storage system sales volume in 2025. Analysts pointed out that peers like Tesla and Sungrow may soon seek similar arrangements to ensure supply, thereby driving CATL's demand for battery materials.

Haibosichuang was established in 2011 and successfully went public in January 2025, becoming a leading enterprise in the domestic energy storage integration field. In 2024, the company achieved revenue of 8.2 billion yuan, with energy storage shipments reaching 11.8GWh The prospectus shows that from 2021 to 2023, CATL and its subsidiaries have been the largest supplier of Haibo Sichuang.

On the same day, CSI Solar announced that its energy storage business subsidiary signed a contract to provide a full set of energy storage solutions and turnkey EPC services for the "Tianwang No. 2" energy storage project in Ontario, Canada. The project has a scale of 411MW/1858MWh, making it one of the largest energy storage projects in Ontario to date.

According to a research report by Guotai Junan Securities, as of now, CSI Solar has deployed over 8GWh of energy storage systems in North America. The implementation of the "Tianwang No. 2" project further consolidates the company's leading position in the North American energy storage market.

Domestic and international energy storage demand is reaching a resonant moment!

The acquisition of this overseas large order by CSI Solar aligns with the trend of domestic energy storage companies accelerating their overseas expansion. Haibo Sichuang stated in an investor survey:

The growth momentum in 2025 will mainly come from three aspects: long-term growth of domestic energy storage scale, rapid expansion of overseas markets, especially in North America and Europe, and the expansion of new application scenarios.

Frequent favorable domestic energy storage policies inject strong confidence into the industry’s development.

On November 10, the country officially included new energy storage in the applicable scope of the capacity electricity price mechanism for the first time in a formal document. Guotai Junan believes that if the capacity electricity price policy is promoted nationwide, more provinces will achieve economic drivers for energy storage, which is beneficial for high growth in energy storage.

Inner Mongolia's independent energy storage policy is even more aggressive, with the discharge compensation set at 0.28 yuan/kWh by 2026, making energy storage economically viable, and it is expected to greatly stimulate local energy storage demand.

Cinda Securities pointed out that energy storage drives a new round of lithium battery cycles, benefiting from overseas energy transitions and domestic energy storage policy support. It is expected that from 2025 to 2027, there will be a global energy transition-driven energy storage cycle, with energy storage demand growth expected to reach 50% in 2026.