Analysis of Huasheng Lithium Battery's Strong Performance: Driven by VC Price Hikes and Supported by Energy Storage Demand

Huasheng Lithium Battery (688353), a leading lithium battery electrolyte additive enterprise listed on the STAR Market, has recently shown strong performance due to the combined effect of multiple favorable factors. The company mainly engages in lithium battery electrolyte additives such as VC (Vinylene Carbonate) and FEC (Fluoroethylene Carbonate). Among them, its VC market share is 17-20% (ranking second), and FEC market share is 40-45% (ranking first) [0].

1. Price Catalyst
   : VC additive prices have surged from a low of 45,000 yuan/ton to 120,000-160,000 yuan/ton, an increase of over 150%, becoming the core catalyst for the stock price rise [0]. This price hike trend is closely related to robust energy storage demand and the price surge of electrolyte materials [1].

2. Capacity Expansion Support
   : The company currently has a VC production capacity of 18,000 tons (including a total capacity of 14,000 tons). After the Hubei Yunmeng factory is put into operation in the second half of 2026, the total capacity will reach 45,000 tons, providing a solid foundation for long-term growth [0].

3. Strong Market Demand
   : Exceeding expectations in energy storage demand combined with an increase in the market share of lithium iron phosphate batteries has driven the growth of VC additive demand, and the supply-demand pattern remains tight [0]. The sales volume of VC and FEC is expected to reach 12,000 tons and 7,800 tons respectively in 2025 [0].

4. Capital Support
   : Institutional attention has increased significantly; the Dragon and Tiger List shows active institutional funds, with a single-day turnover of 2.2 billion yuan and a turnover rate of 18.67% [0][2].

: Huasheng Lithium Battery’s strong performance reflects the strong cyclicality of the lithium battery material industry. The surge in VC additive prices reflects profound changes in the supply-demand pattern of the industrial chain, which is not only a short-term phenomenon but also likely related to the construction of new power systems and the explosive growth of energy storage demand [1][7].

: The company has completed laboratory trials of various materials suitable for solid-state/semi-solid-state batteries [0], indicating that it has laid out in the field of next-generation battery technology and prepared for future technological iterations.

: The stock price started at 40.50 yuan on October 28 and reached a high of 120 yuan on November 13, an increase of nearly 200% [0]. This rapid rise not only reflects the improvement in fundamentals but also the high market sentiment. New energy stocks have performed strongly overall [6], providing a favorable market environment for individual stocks.

:

• Performance flexibility brought by VC additive prices remaining high or continuing to rise
• Smooth progress of capacity expansion plans, with capacity reaching 45,000 tons by 2026
• Sustained growth in energy storage demand and further increase in the market share of lithium iron phosphate batteries
• First-mover advantage brought by the layout of solid-state/semi-solid-state battery technology

:

• Risk of a sharp decline in VC additive prices, as current prices are already at a relatively high level
• Risk of capacity expansion progress falling short of expectations
• Uncertainty brought by policy changes in the new energy industry
• Correction pressure after excessive short-term stock price increases

: Based on the current supply-demand pattern and capacity expansion plan, Huasheng Lithium Battery’s strong performance has a certain degree of sustainability. However, investors need to closely monitor the trend of VC prices, the progress of the company’s capacity deployment, and changes in market sentiment in the overall new energy sector.

Huasheng Lithium Battery (688353)'s strong performance is mainly driven by multiple factors such as the surge in VC additive prices, robust energy storage demand, capacity expansion expectations, and institutional capital. As the listed company with the largest VC additive production capacity, it has significant industry status advantages. In the short term, the tight supply-demand pattern and high price operation are expected to continue; in the medium and long term, capacity expansion and technology layout provide support for growth. However, investors need to be alert to the risk of price decline and adjustment pressure brought by excessive short-term increases.