Global electric vehicle sales increased by 11% month-on-month in June, China's penetration rate reached 43%, spodumene trading is weak but optimistic in the medium term (J.P. Morga
A J.P.
A J.P. Morgan report shows that global pure electric vehicle (BEV) sales increased by 11% month-on-month to 1.045 million units in June, with China's BEV penetration rate increasing by 1 percentage point to 43%. Although spodumene trading has been weak recently, supported by energy storage demand, it maintains a bullish view on lithium prices in the medium term and lists PLS (Pilbara Minerals) as the first choice for the lithium sector. One-sentence conclusion: The terminal demand for electric vehicles remains strong, and the demand for energy storage provides a mid-term bottom for lithium prices. The current low price of the lithium sector is actually a good opportunity for deployment. Pros/Cons: Like lithium mining stocks, especially Pilbara Minerals (PLS). Benefit the electric vehicle industry chain. Market pessimism about short-term lithium price weakness may be overdone, while the boost to medium-term energy storage demand may be underestimated. Catalysts: 1) Global BEV sales data in July and the third quarter; 2) Quarterly production guidance and cost reports from major lithium miners; 3) Global energy storage project installed capacity data.