China Battery & Materials: CATL keeps charging ahead of peers; July battery production remains solid

Research evidence excerpt

China Battery & Materials: CATL keeps charging ahead of peers; July battery production remains solid

J P M O R G A N Asia Pacific Equity Research

03 July 2026

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China Battery & Materials

CATL keeps charging ahead of peers; July battery

production remains solid

CATL-A and China’s battery supply chain stocks have pulled back about 15–35% Asia Autos & EV Battery

ACfrom early-May peaks (vs. CSI300 -1%) due to sector rotation and a lack of fresh Rebecca Wen

catalysts, with sentiment further pressured by rising geopolitical tensions (e.g., (852) 2800-8505

EU–China trade friction and the U.S.’s potential ban on Chinese ESS inverters rebecca.y.wen@jpmorgan.com

reported on 1-July, note) and downward revisions to CATL/BYD’s June J.P.MorganMorganBrokingSecurities(Hong (AsiaKong)Pacific)LimitedLimited/ J.P.

production volumes (per ZE Consulting on 27 June and ICCSino shortly after). The AC Avery Chan

correction has also coincided with seasonally slower battery production in June– (852) 2800-8659

July, weaker-than-expected domestic passenger EV demand so far in 2Q, and more avery.chan@jpmorgan.com

cautious procurement amid softening raw material prices; however, we view it J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

Morgan Broking (Hong Kong) Limited

mainly as near-term seasonality and inventory adjustment rather than a medium-

term growth deterioration. ZE Consulting’s latest forecast indicates the top six Cathy Liu

(852) 2800-8629