According to a research report released by Huaxi Securities, the domestic new energy vehicle (NEV) sector has successfully navigated through a period of relative stagnation, witnessing a notable sales resurgence in March, marked by swift month-on-month growth. Buoyed by the introduction of innovative models and the growing prominence of cost-efficiency benefits, sales are anticipated to sustain an upward trajectory. This sustained growth is expected to catalyze an increase in the month-on-month production schedules of upstream and midstream enterprises. Fueled by the twin drivers of a robust energy storage demand surge and an augmentation in battery capacity per NEV, the lithium battery industry chain is poised to embark on a fresh cycle of expansion. The demand for upstream materials is on an expansionary path, and prices are projected to ascend in tandem with the escalating downstream demand. Consequently, each segment within the chain is primed to experience concurrent growth in volume, price, and profitability. Certain segments, such as copper foil and separators, which faced constraints in capacity expansion during the initial phases, are anticipated to gradually encounter supply tightness. This is attributed to their capital-intensive nature and enhancements in product structure, leading to an uptick in processing fees.