According to Bank of America Securities, the tightening of regulations in Zimbabwe is expected to have a limited impact on CATL

Bank of America Securities published a research report stating that the Zimbabwe Ministry of Mines recently announced an immediate suspension of all raw mineral and lithium concentrate exports, aiming to strengthen oversight and accountability in the mining industry. In the future, only companies holding valid mining rights and approved processing plants will be eligible for export, while agents and third-party traders are banned from exporting.

The report pointed out that data shows Zimbabwe will account for about 11% of global lithium supply by 2025. It is anticipated that the new measures may drive up lithium prices in the short term, causing short-term fluctuations in lithium prices, but it is believed that the long-term impact on CATL (03750.HK) will be limited. Bank of America Securities explained that miners can negotiate with the government to regain export licenses, which should alleviate supply tightness. It is believed that CATL has the ability to pass most upstream cost pressures onto customers, especially energy storage companies.

Considering the robust growth prospects of the energy storage battery business and new battery technologies that help maintain healthy profit margins and expand market share, enabling strong overseas shipment growth outlook, Bank of America Securities reiterated its "Buy" rating on CATL, giving a target price of 615 yuan