[China Merchants Electric New] VC Industry Update

English summary

### [China Merchants Electric New] VC Industry Update Time: 2026-07-29 16:35:31 Content: Supply and demand are tighter. Battery production schedules in August increased 9% month-on-month, and demand continues to rise. Industry feedback indicates that there is already a gap between VC supply and demand, with downstream relying mainly on inventory and reduced consumption. VC prices continue to rise. Recently, Xinluo Lithium Battery shows that the third-party price of VC jumped from RMB 170,000-200,000/ton to RMB 200,000-250,000/ton. Since May, VC prices have been rising from RMB 125,000-135,000/ton, accelerating after late June. Industry feedback suggests that VC production capacity is currently at full capacity. Supply release is relatively restrained. Previously, the market expected the top company's 30,000-ton capacity to be rapidly released in Q4, affecting prices, but the actual release progress may be more cautious. Combined with recent environmental inspections of some companies in the industry, we believe that VC prices are ushering in a major upward wave. Looking ahead to next year, VC will see a wave of capacity expansions, but the actual release pace of top companies will be cautious, and the wait-and-see attitude of other enterprises is not expected to change significantly. Industry prices are expected to remain high. …