On Thursday, the White House issued a joint statement with GM, Ford and Stellantis that Biden would sign an executive order on Thursday setting a target of 50 per cent of new car sales by 2030 and proposing new vehicle emissions regulations to reduce pollution by 2026.

The heat of the new energy track has been going on for more than a year. Since the second half of last year, the new energy vehicle market has picked up rapidly. At the same time, the industry also set off an upsurge of production expansion. The agency believes that the current lithium battery industry is in the stage of arms race, and the equipment will maintain a high demeanor in the next three years.

Biden plans to account for 40% of total new car sales in 2030, accounting for 40% of total new car sales.

The White House issued a statement on Thursday that it will take steps to promote US leadership in clean cars and trucks, with the goal that half of all new cars sold in the United States will be zero-emission vehicles by 2030.

Biden said in a statement that he will sign an executive order setting an ambitious goal for the U.S. new energy vehicle industry that half of all new cars sold in 2030 will be zero-emission vehicles, including pure electric vehicles, plug-in hybrid electric vehicles or fuel cell electric vehicles. The executive order also launched the development of long-term fuel efficiency and emission standards to save consumer money, reduce pollution, promote public health, promote environmental justice and deal with the climate crisis.

Biden believes that the United States will strive to take the lead in electric vehicle manufacturing, infrastructure and innovation, including building a national network of electric vehicle charging stations, providing consumer incentives to stimulate US manufacturing, financing the restructuring and expansion of the entire domestic manufacturing supply chain, and maintaining a competitive edge in the next generation of clean technologies.

Subsequently, major U. S. automakers also issued statements expressing support for Biden's new energy vehicle plan.

Ford, General Motors and Stellantis, the auto group merged by the PSA Group and Fiat Chrysler Group, said in a joint statement that Biden's plan represents a huge shift in the U.S. auto market, which can only be achieved by timely deployment of the full range of electrification policies promised by the government in the "rebuild better Plan," including purchasing incentives and an integrated charging network with sufficient density. To achieve these goals, the US needs greater incentives for electric car manufacturing and supply chains. It is believed that the United States can strengthen its continued leadership in clean transportation technology by increasing investment in the innovation and manufacturing of electric vehicles.

BMW, Ford, Honda, Volkswagen and Volvo also issued a joint statement supporting the government's future goals for electric vehicles and praising Biden's leadership in reducing emissions and investing in critical infrastructure to achieve these reductions.

Ray Curry, president of the American Auto Workers Union, said that as countries compete to build cars of the future, the global auto industry is on the eve of great changes. The United States currently lags behind China and Europe, where automakers have invested billions of dollars to develop markets and expand manufacturing. Biden's plan means that the US will invest boldly in manufacturing, consumer incentives and infrastructure, and ensure the global leadership of the US auto industry.

Development Plan of New Energy vehicles in China

In December 2020, the General Office of the State Council issued the New Energy vehicle Industry Development Plan (2021-2035), which proposed that by 2025, the average power consumption of new vehicles for pure electric passenger vehicles would be reduced to 12.0 kWh / 100 km. The sales of new vehicles for new energy vehicles reached about 20% of the total sales of new cars, and highly self-driving vehicles were commercialized in limited areas and specific scenarios.

By 2035, pure electric vehicles will become the mainstream of new sales vehicles, vehicles in the public domain will be fully electrified, fuel cell vehicles will be commercialized, and highly self-driving vehicles will be applied on a large scale. effectively promote the level of energy saving and emission reduction and the improvement of social operation efficiency.

In addition, the Plan deploys five strategic tasks, including improving the capability of technological innovation, building a new industrial ecology, promoting the development of industrial integration, improving the infrastructure system, and deepening opening up and cooperation. it includes improving the industrial basic capacity of key components such as power batteries and a new generation of vehicle motors, speeding up the development and application of automotive operating systems, optimizing the structure of energy consumption, and improving the level of transportation system and urban intelligence. We will speed up the construction of infrastructure such as recharging and hydrogenation.

The Plan requires the implementation of preferential tax policies related to new energy vehicles, the optimization of classified traffic management and financial services, financial support for the construction of charging piles as public facilities, and preferential policies for parking and charging new energy vehicles.

The market of new energy vehicles continues to pick up, and concept stocks are hot.

Recently, a large number of new energy concept stocks represented by Ningde era have been rising. The share price of Ningde era has repeatedly set new highs, which reached a new high of 582.2 yuan per share during the day of July 30. At present, the total market capitalization of the Ningde era is 1.2973 trillion yuan, ranking first on the gem and third in A shares, second only to Guizhou Moutai and Industrial and Commercial Bank of China. BYD's share price broke through 300 yuan for the first time in history yesterday, and the market capitalization of Yiwei LiNeng exceeded 200 billion.

In fact, the popularity of the new energy track began as early as a year ago. Wind market data show that since hitting a stage low in April 2020, the Wind new energy index has risen continuously and has risen by more than 200% so far. Over the same period, the Shanghai Composite Index rose 23.95%, the Shenzhen Composite Index rose 44.41%, and the gem Index rose 81.16%.

The Wind lithium battery index hit a new high yesterday, rising more than 180 per cent since hitting a phase low at the end of April 2020.

Corresponding to the trend of related concept stocks, after the middle of 2020, the new energy vehicle market recovers rapidly, and the power battery market heats up. In 2020, the production and sales of new energy vehicles in China reached 1.366 million and 1.367 million respectively, an increase of 10.01% and 13.38% respectively over the same period last year. Recently, the latest data released by the China Association of Automobile Manufacturers show that the sales of new energy vehicles in China have reached a new high. Judging from the market situation in the first half of the year, the cumulative sales of new energy vehicles have been the same as the level of 2019, of which more than 1 million pure electric vehicles.

In June, the production and sales of new energy vehicles completed 248000 and 256000 respectively, an increase of 1.3 times and 1.4 times respectively over the same period last year. In June, new energy production set a new record for the same month, while new energy sales set a new record and set a new record. From January to June, the production and sales of new energy vehicles completed 1.215 million and 1.206 million respectively, a two-fold increase over the same period last year.

Industry expansion craze

The continued hot market has also made the lithium battery industry enthusiastic about expanding production.

Recently, Ganfeng Lithium, Shanshan shares, Yiwei Lithium Energy, New Zebang and other lithium companies have announced the expansion of production.

• Ganfeng Lithium announced that Ganfeng Lithium Power, a holding subsidiary, plans to invest 8.4 billion yuan with its own funds to build a new lithium battery project with an annual production capacity of 15GWh.

• Shanshan said that it plans to build an integrated base of anode materials for lithium-ion batteries with an annual output of 200000 tons, with a total investment of about 8 billion yuan in fixed assets.

• Yiwei LiNeng announced that it plans to cooperate with Enjie to carry out the manufacture of lithium-ion battery separation membrane and coated film, with a total investment of 5.2 billion yuan.

• The new Zebang announced that it plans to invest in the Dutch new Zeus lithium-ion battery electrolyte and materials project in Murdek, the Netherlands, with the wholly-owned grandson company as the main implementation body, with a total investment of about 1.5 billion yuan.

Corresponding to the trend of industry expansion, orders from the upper and lower reaches of the industrial chain are also pouring in:

• Haimu Star announced that recently, AVIC Lithium Technology Co., Ltd. and the company signed the "equipment purchase intention Framework Agreement", this cooperation intention CNAC Lithium Electric proposed procurement company cell assembly equipment, according to the historical cooperation experience of both sides, the total amount of CNAC lithium purchase is expected to be 1.968 billion yuan.

• Yongtai Technology announced that it signed a material procurement agreement with Ningde Times to purchase lithium hexafluorophosphate, lithium difluorosulfonimide (LIFSI) and ethylene carbonate (VC) products from the company. The agreement is valid from July 31, 2021 to December 31, 2026. Within 10 days after the signing of the agreement, Ningde Times shall pay the supplier a total of 600 million yuan in advance according to the purchase quantity of lithium hexafluorophosphate, lithium difluorosulfonimide (LIFSI) and ethylene carbonate (VC).

At the same time, other companies have announced that they will dabble in lithium resources.

• Anzhong announced this evening that the company intends to acquire Jiangxi lithium mine assets. According to the announcement, Anzhong shares and Qiang Qiang Investment and other parties signed an equity acquisition intention agreement to use their own funds to acquire no less than 51% stake in Jiangxi Tongan. Jiangxi Tongan holds a 70% stake in Jiangxi Dingxing Mining and a 49% stake in Jiangxi Xingli. Dingxing Mining also holds a 51% stake in Jiangxi Xingli. As of August 5, 2021, Dingxing Mining holds a total of 6 porcelain clay mining rights, with cumulative identified resource reserves (332-333) totaling about 60 million tons. After the completion of this transaction, the project is expected to mine about 1.35 million tons of raw ore, produce about 900000 tons of potassium albite powder, about 300000 tons of lithium concentrate, and equivalent to about 23000 tons of lithium carbonate.

• Chen Jinghe, chairman of Zijin Mining Group, has previously said that he will develop and distribute new energy and new material resources, including lithium mines, and plan to acquire some projects and mine assets in the future, and open up the whole industry chain from upstream lithium resources to materials. However, the company later announced that so far, the company does not have lithium resources and related business. The company's layout of lithium and other new energy mines is based on the company's strategic preliminary planning, there is no specific time schedule and specific project arrangements.

Organization: the American new energy cycle is about to begin

According to the Western Securities Research report, the North American auto market has entered the replenishment cycle, and the American new energy cycle is about to begin. The analysis shows that from 2020 to now, China's new energy vehicle market has entered the post-subsidy era, with products playing a leading role. Europe continues to have high subsidies, while the United States increases new energy tax subsidies. Under the upward trend of the automobile market and policy environment, American car companies have significantly accelerated the launch of electric vehicle products, statistics of electric vehicles listed this year, traditional car companies such as General Motors, Ford products are more intensive. GM has promised to launch 30 new electric vehicles by 2025 (more than 20 in the US domestic market), and Ford plans to increase its share of pure electric vehicle sales to 40 per cent by 2030.

Western Securities believes that parts manufacturers in the global supply chain system of American car companies will fully benefit, including leading parts companies and lithium material suppliers in the supply system of American battery manufacturers (LG, SKI, etc.). It is recommended to pay attention to Nestl é, Fuyao Glass, PUTALAI, Enjie shares, and so on.

Pacific Securities pointed out that lithium equipment orders are expected to exceed expectations in the second half of the year. According to understanding, Great Wall Honeycomb, AVIC Lithium, Yiwei Lithium, etc., will carry out large-scale production expansion in the second half of the year, which is expected to release more than 100Gwh equipment purchases (according to 1Gwh/ 200 million investment, will exceed 20 billion orders), giving priority to manufacturers with capacity advantages.

Warburg Securities pointed out that with the capacity expansion of mainstream battery manufacturers (Ningde Times, LG, Guoxuan Hi-Tech, Yiwei Lithium Energy), the demand and order locking of mid-stream battery materials are becoming increasingly important. From the electrolyte signed by Ningde era and Tianzi material to lock 55% of its production capacity, it can be seen that the promotion of downstream demand has also led to the exuberant order demand of mid-stream battery materials manufacturers. We can pay attention to the leading manufacturers with obvious advantages of cost and economies of scale in the field of electrolyte and diaphragm with low technical barriers and the integrated layout of upstream and downstream, pay attention to the leading cathode material manufacturers with deep layout of high nickel ternary technology in cathode materials and obvious advantages in overseas business expansion.

Guotai Junan Securities believes that the current lithium battery industry is in the stage of arms race, and the equipment will maintain a high bearing in the next three years, and supply and demand will be in a tight state. With the fixed landing of batteries in major vehicle factories, the procurement of battery plant equipment will be accelerated, and the orders and performance of equipment companies are expected to exceed expectations. Sodium battery has a large cost advantage. After industrialization in 2023, the global electrification rate will be accelerated. The equipment used in its production is similar to that of lithium battery, which is good for existing equipment companies.