Security Amid Soaring Oil Prices: China’s New Energy!

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The fires of war in the Middle East are reshaping the global energy landscape, and China’s new energy industry chain is becoming one of the biggest beneficiaries of this crisis. CATL’s stock price has reached a record high, and sectors such as photovoltaics, wind power, lithium batteries, and electric vehicles have strengthened in turn. Behind the collective agitation in the A-share new energy sector is a clear energy security logic being repriced by global capital.

On April 13, the A-share new energy sector strengthened again, lithium mining concept stocks surged, CATL rose more than 4% intraday, hitting a record high. The photovoltaic sector soared in the afternoon, with companies like Tongwei hitting the daily limit.

At the same time, Ningbo Deye Technology expects its first-quarter profit to grow by up to 70% year-on-year, directly attributed to the surge in overseas energy storage orders; China-made electric and hybrid vehicles saw their March exports more than double year-on-year, setting a record at 349,000 units.

Behind all this is the almost complete closure of the Strait of Hormuz, triggering the largest energy supply interruption in history. According to the International Energy Agency, the supply shock from this conflict is unprecedented. Global consumers and governments are turning to solar, wind, storage, and electric vehicles at an unprecedented rate—most of these technologies are produced in China. China holds about four-fifths of global photovoltaic manufacturing capacity and more than 70% of global electric vehicle production.

CATL Hits New High, Repricing of Energy Security Logic

CATL’s record-high stock price is the most iconic signal of this market rally.

Since the escalation of the Middle East conflict at the end of February, Huaxin Securities notes that leading battery companies like CATL and BYD have greatly outperformed international oil giants, highlighting the market’s long-term bet on energy transition. Dongwu Securities maintains a “Buy” rating on CATL in its sector weekly, listing it as the top pick for “global leader in power and energy storage batteries, low valuation with certain growth.”

The revaluation of energy security logic is systematically raising the strategic premium of the new energy sector. Huaxin Securities believes “energy autonomy and control” will become the core investment theme of the coming years. New energy generation, energy storage, and power grid equipment will see a strategic opportunity window. With external energy shocks and carbon neutrality targets overlapping, installation demand in relevant sectors is expected to systematically increase, significantly elevating strategic priority.

Lithium Batteries: High Oil Prices Unlock Demand Ceiling

Rising oil prices are the most direct catalyst for this rally in the lithium battery sector.

Dongwu Securities clearly points out in its power equipment sector weekly, high oil prices directly benefit lithium battery demand, with expectations for annual electric vehicle exports to increase by over 70%. Production data confirms the upward trend: after sequential growth of 20% in March, April is expected to grow another 5%, and May about 10%, with continuous positive momentum.

On pricing, Zimbabwe’s lithium mine exports still need time to resume; lithium carbonate prices remain high, battery price transmission is smooth, spot prices have been adjusted to 0.38 yuan/Wh; price increases for small and medium customers have been implemented on the material end, and large customers are expected to follow gradually in April. Dongwu Securities notes that the battery and separator segments are nearing profit inflection points, and base order prices are beginning to recover.

Energy storage demand is also robust. Ningbo Deye Technology attributes its significant first-quarter profit growth directly to surging demand for battery storage from households and businesses in Europe and Southeast Asia. Domestically, in January-March 2026, total large-scale storage tenders/awards reached 93.8/83.7 GWh, up 92%/286% year-on-year. Dongwu Securities predicts global energy storage installations will grow by more than 60% by 2026.

Wind Power: Europe’s Energy Security Drives New Overseas Boom

The Middle East conflict is pushing up oil and gas prices and accelerating Europe's policy pace to break free from fossil fuel dependence, ushering in a prosperous cycle for offshore wind powered by "policy boost + strengthened energy security + supply chain restructuring".

Huaxin Securities’ power equipment sector weekly details Europe’s intensive policy rollout: Germany plans to restart offshore wind auctions in 2027; UK AR8 auction has been advanced to July 2026, while 33 categories of offshore wind-related product import tariffs—including blades and cables—are cancelled; the Netherlands plans to start subsidized offshore wind project bids in September 2026; France will combine AO9 and AO10 tenders, aiming for about 10 GW of capacity. At the EU level, the “Hamburg Declaration” sets a target of 300 GW offshore wind by 2050; the “Clean Energy Investment Strategy” plans to invest €660 billion annually from 2026 to 2030.

On the supply chain side, European domestic capacity is still constrained by high costs and insufficient capacity, while Chinese companies have formed significant competitive advantages in key areas such as subsea cables, pipe piles, and towers. Huaxin Securities expects that in the next 2-3 years, Europe’s offshore wind industrial chain will feature “local assembly + globalized components,” with sustained growth in equipment import demand. The UK’s removal of import tariffs is essentially “institutional opening” of the external supply chain, directly lowering the cost threshold for Chinese companies entering the European market.

Domestically, Dongwu Securities notes that China’s offshore wind market is likely to resume high growth in 2026, entering a new boom cycle. Recommendations are made for sub-sectors such as sea piles, complete machines, and submarine cables.

Electric Vehicles: Surge in Oil Prices Accelerates Global Penetration

Rising oil prices are becoming an unexpected tailwind for China’s electric vehicle exports.

According to Bloomberg, China-made electric and hybrid vehicles saw their March export volumes more than double year-on-year, hitting a record 349,000 units. High oil prices are reviving consumer demand for alternatives to gasoline vehicles. According to the Wall Street Journal, China’s March EV exports more than doubled compared to the same period last year, and higher oil prices have significantly increased the appeal of plug-in models.

BYD and Geely are among the beneficiaries. Industry observers compare the current situation to the 1970s oil crisis—when Japan captured global market share through fuel-efficient models during prolonged instability. Chinese brands represented by BYD and Leapmotor saw their share in the European passenger car market rise to 8% in February, almost doubling from 4.2% last year; in the pure EV segment, Chinese brands’ share rose to 14%.

Dongwu Securities data shows that in February, mainstream EV sales in nine European countries reached 220,000 units, up 27% MoM and 6% YoY; total annual growth is expected to remain above 30%. BYD’s domestic sales reached 300,000 units in March, overseas sales hit 120,000 units, and its annual export target has been raised to 1.5 million units, with expected year-on-year growth exceeding 40%.

Dongwu Securities points out that the current EV industry expects demand growth of more than 30%, with profit inflection points approaching. The firm strongly recommends leaders in batteries and structural components with stable profitability, and favors leaders in materials with earnings elasticity.

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