The conflict in the Middle East is reshaping the global energy landscape, and China's new energy industry chain is emerging as one of the major beneficiaries of this crisis. Contemporary Amperex Technology Co. Limited (CATL) saw its stock price hit a record high, while sectors including photovoltaics, wind power, lithium batteries, and electric vehicles experienced successive strong performances. Behind the collective surge in A-shares' new energy sector lies a clear energy security narrative being repriced by global capital.
On April 13, the A-share new energy sector strengthened again, with lithium mining concept stocks surging. CATL's intraday gain exceeded 4%, reaching a new historical high for its stock price. The photovoltaic sector rallied in the afternoon session, with companies like Tongwei Co., Ltd. hitting the daily limit-up.
Simultaneously, Ningbo Deye Technology anticipated a first-quarter profit increase of up to 70% year-on-year, directly attributed to a surge in overseas energy storage orders. Exports of Chinese-manufactured electric vehicles and plug-in hybrid models more than doubled year-on-year in March, reaching a record 349,000 units.
The backdrop to all this is the near-total closure of the Strait of Hormuz, causing the largest energy supply disruption in history. According to the International Energy Agency, the energy supply shock from this conflict is unprecedented. Global consumers and governments are shifting towards solar, wind energy, energy storage, and electric vehicles at an unprecedented pace – and the vast majority of these technologies originate from China. China accounts for approximately four-fifths of global photovoltaic manufacturing capacity and over 70% of global electric vehicle production.
CATL's record high is the most iconic signal of this market trend. Since the escalation of the Middle East conflict in late February, Huaxin Securities pointed out that leading battery companies like CATL and BYD have seen gains that comprehensively surpass those of international oil giants, highlighting the market's long-term bet on the energy transition. Soochow Securities maintained its "Buy" rating on CATL in its weekly industry tracking report, listing it as a top recommended pick, citing its position as a "global leader in power and energy storage batteries with certain growth and low valuation."
The reassessment of the energy security logic is systematically elevating the strategic premium of the new energy sector. Huaxin Securities believes that "energy independence and controllability" will become a core investment theme for the coming years, with strategic windows of opportunity opening for new energy power generation, energy storage, and grid equipment. Against the backdrop of external energy shocks coupled with carbon neutrality goals, the central demand for installed capacity in related sectors is expected to systematically rise, with strategic priority significantly enhanced.
High oil prices are the most direct catalyst for the lithium battery sector's current performance. Soochow Securities explicitly stated in its weekly power equipment industry tracking report that high oil prices will directly benefit lithium battery demand and projected that full-year electric vehicle exports could achieve growth exceeding 70%. Production scheduling data also confirms the uptrend: after a 20% month-on-month increase in March, a further 5% increase is expected in April, and another approximate 10% increase is projected for May, indicating sustained positive momentum.
On the pricing front, the recovery of lithium ore exports from Zimbabwe still requires time. Lithium carbonate prices remain high, and cost pass-through for batteries is smooth. Spot prices have adjusted to 0.38 yuan/Wh. Price increases for materials have been implemented for small and medium-sized customers, with major customers expected to follow suit gradually in April. Soochow Securities indicated that profit inflection points for the battery and separator sectors are approaching, and prices for base-level orders are beginning to recover.
Energy storage demand is also robust. Ningbo Deye Technology directly attributed its significant first-quarter profit growth to a surge in demand for battery storage from households and businesses in Europe and Southeast Asia. Domestically, cumulative bidding/awarded capacity for large-scale storage projects from January to March 2026 reached 93.8/83.7 GWh, representing year-on-year growth of 92%/286%. Soochow Securities forecasts global energy storage installations will achieve growth exceeding 60% in 2026.
The Middle East conflict, by pushing up oil and gas prices, is accelerating Europe's policy rhythm to break free from fossil fuel dependence. Offshore wind power is entering an upcycle driven by a triple combination of "policy support, enhanced energy security, and supply chain restructuring." Huaxin Securities detailed the pace of intensive policy implementation in Europe in its weekly power equipment report: Germany plans to restart offshore wind auctions in 2027; the UK's AR8 auction date has been brought forward to July 2026, alongside the removal of import tariffs on 33 offshore wind-related products, including blades and cables; the Netherlands plans to launch subsidized offshore wind project tenders in September 2026; France has merged its AO9 and AO10 tender rounds, planning to award approximately 10 GW of capacity. At the EU level, the Hamburg Declaration sets a clear target of 300 GW of offshore wind by 2050, and the Clean Energy Investment Strategy plans annual investments of 660 billion euros from 2026 to 2030.
On the supply chain front, European local capacity remains constrained by high costs and insufficient production. Chinese companies have established significant competitive advantages in key areas such as submarine cables, monopiles, and towers. Huaxin Securities predicts that in the next 2 to 3 years, Europe's offshore wind supply chain will exhibit a division of labor pattern characterized by "local turbine OEMs + globalized components," with demand for equipment imports expected to grow steadily. The UK's policy of removing import tariffs essentially constitutes an "institutional opening" to external supply chains, directly lowering the cost barrier for Chinese companies entering the European market. Domestically, Soochow Securities noted that China's offshore wind sector is expected to return to high growth in 2026, entering a new upcycle, and recommended segments like foundations, turbine OEMs, and submarine cables.
Soaring oil prices are providing an unexpected boost to Chinese electric vehicle exports. According to Bloomberg, exports of Chinese-made electric vehicles and plug-in hybrids more than doubled year-on-year in March, setting a record of 349,000 units, as high oil prices reignited consumer demand for alternatives to internal combustion engine vehicles. The Wall Street Journal reported that China's March EV exports more than doubled compared to the same period last year, with rising oil prices significantly enhancing the appeal of plug-in models.
Automakers like BYD and Geely are benefiting from this trend. Industry observers draw parallels with the 1970s oil crisis – when Japanese automakers gained global market share during sustained turmoil with fuel-efficient models. Chinese brands represented by BYD and Leapmotor saw their overall share in the European passenger car market rise to 8% in February, nearly doubling from 4.2% a year earlier; in the pure electric vehicle segment, the share of Chinese brands increased to 14%.
Data from Soochow Securities shows that EV sales in nine major European countries reached 220,000 units in February, up 27% year-on-year and 6% month-on-month, with full-year growth expected to remain above 30%. BYD sold 300,000 units domestically and 120,000 units overseas in March, and has raised its full-year export target to 1.5 million units, potentially achieving a year-on-year growth rate exceeding 40%.
Soochow Securities pointed out that the current expected demand growth rate for the electric vehicle industry exceeds 30%, with a profit inflection point approaching. It strongly recommends leading battery and structural component companies with stable competitive landscapes and profitability, and is optimistic about material leaders with profit elasticity.
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