JP Morgan said battery shares have materially underperformed in recent months as market focus has shifted from demand to profitability. The bank now rates all second-tier battery makers and battery materials and equipment coverage Neutral or Underweight and has cut earnings across the battery supply chain. JP Morgan still sees global EV and ESS battery demand rising 20–25% by 2027—above consensus—but warned profitability could deteriorate faster than expected and that profits are being reallocat

JP Morgan said battery shares have materially underperformed in recent months as market focus has shifted from demand to profitability. The bank now rates all second-tier battery makers and battery materials and equipment coverage Neutral or Underweight and has cut earnings across the battery supply chain. JP Morgan still sees global EV and ESS battery demand rising 20–25% by 2027—above consensus—but warned profitability could deteriorate faster than expected and that profits are being reallocated across the EV supply chain. Price-target cuts: CATL (03750.HK) HKD725->HKD500; 03931.HK HKD40->HKD17; 00470.HK HKD45->HKD22. All three stocks were downgraded from Overweight to Neutral.