Just finished reading CATL's H126 Report. Here are my quick thoughts as i sip my morning coffee! It's extremely bullish for lithium and the numbers within the report are quite mind blowing. What really sticks out for me is the ~95% factory utilisation with production of 498 GWh. Their production capacity is essentially full. This is CATL basically running production as hard as they can. This means that the consumption of LCE is essentially capped until more battery capacity is built. Factory capacity is the limiting factor for CATL's LCE consumption. They've got 764 GWh of capacity currently within the construction pipeline. To give you some context this is roughly 650kt of LCE or 5.4Mt of SC6. Where is 650kt of LCE going to come from? Mines take 4-8 years typically to come online in the western world, CATL can throw up battery capacity in 1-2 years or less. So it's clear that supply of lithium will be the constraint here. And it's important to note this is just CATL. Throw in BYD, LG, etc.. And its not like this 764GWh of capacity will sit idle. Global shipments reached 486 GWh of battery cells during H1 2026 which is up 93%. What else is growing at this speed? You take this insane growth of one company, combined with the recent governance issues in Zimbabwe, lack of infrastructure in Nigeria and instability in the likes of Mali and the DRC, western spodumene producers and South American brines look very good here. Cheers for reading!