Summary of Conference Call Notes Industry Overview - The conference call focused on the **China Materials** industry, particularly in relation to **lithium**, **copper**, and **aluminum** sectors, as well as companies like **CATL**, **Zijin Mining**, and **Chalco** [1][2][3]. Key Insights 1. **Investor Sentiment on Lithium**: - There is significant interest in lithium due to a recent price rally driven by strong expectations in **Energy Storage Systems (ESS)**. Most investors are bullish on lithium [2][3]. - A cautious near-term outlook is suggested due to a slowdown in **Electric Vehicle (EV)** sales since November, which may impact battery production in Q1 2026E. A more constructive view is expected post-Chinese New Year (CNY) when demand is anticipated to increase [2][4]. 2. **Copper and Aluminum Market**: - Investors show little push-back on copper and aluminum stocks, with a preference for aluminum over copper at current price levels. **Zijin Mining** received the most follow-up inquiries from investors [2][4]. - The aluminum market is expected to remain tight in 2026E, which is supportive for prices and margins. The potential risks associated with aluminum supply are believed to be underappreciated by the market [4]. 3. **Company-Specific Insights**: - **CATL** is highlighted as the most well-owned name among US investors, with discussions around its risk/reward profile being favorable. It is considered to have the lowest risk among ESS-related investments [2][4]. - Other companies mentioned include **China Hongqiao**, **Ganfeng Lithium**, **Guangzhou Tinci Materials Technology**, **Hunan Yuneng New Energy Battery Material**, and **Yunnan Energy New Material**, which are seen as having potential upside in a rising price environment [4][7]. 4. **Market Dynamics**: - The call noted a shift in investor behavior, with many now open to adding selective Chinese equities to their portfolios. This marks a change from previous meetings where the focus was more on sector read-throughs and channel checks [3][4]. Additional Considerations - The report emphasizes the importance of understanding the implications of **China's anti-involution policies** on the materials sector, although specific details were not elaborated [1][2]. - The overall sentiment indicates a positive outlook for the battery price up-cycle into 2026E, with expectations of stronger ESS demand driving market dynamics [4]. Companies Mentioned - **CATL** (Contemporary Amperex Technology Co Ltd) - **Zijin Mining Group Co Ltd** - **Aluminum Corporation of China** - **China Hongqiao** - **Ganfeng Lithium** - **Guangzhou Tinci Materials Technology** - **Hunan Yuneng New Energy Battery Material** - **Yunnan Energy New Material** [7].

Group 1 - The company Tianqi Materials announced a second delay for its "Annual Production of 41,000 Tons of Lithium-ion Battery Materials Project (Phase I)", extending the completion date from December 31, 2025, to July 31, 2026, involving raised funds of 834 million yuan [1] - The total investment for the project is 935 million yuan, with an original construction period of 38 months, now extended to 45 months, resulting in a cumulative delay of 7 months [1] - The delay is primarily due to the procurement and delivery cycle of equipment exceeding expectations, prompting the establishment of a special task force to coordinate with suppliers to shorten delivery times [1] Group 2 - In 2022, Tianqi Materials raised a total of 3.4105 billion yuan through convertible bonds, with a net amount of 3.395 billion yuan, planned for six projects [2] - All other five fundraising projects, aside from the delayed one, have been completed, and surplus funds have been allocated to working capital, including projects for the annual production of 152,000 tons of lithium battery new materials and 20,000 tons of lithium bis(fluorosulfonyl)imide [2]

Core Insights - The report highlights significant growth in the production of lithium battery materials, particularly in November 2025, with domestic battery production reaching 176.3 GWh, a year-on-year increase of 49.66% and a month-on-month increase of 3.34% [1][2] - The production of lithium iron phosphate (LFP) cathode materials also saw a notable increase, with a total output of 26.89 million tons in November 2025, reflecting a year-on-year growth of 29.43% and a month-on-month growth of 0.75% [1][2] Production - In the first eleven months of 2025, domestic battery and LFP cathode material production significantly exceeded the levels seen in the same period of 2024 [1][2] - The capacity utilization rate for LFP cathode materials was reported at 62.53% in November 2025 [1][2] Pricing - The prices of key raw materials for lithium batteries have stabilized, with industrial-grade lithium carbonate priced at 94,000 yuan per ton as of December 12, 2025, reflecting a weekly decrease of 3.40% [3] - The price of LFP (power type) remained stable at 39,100 yuan per ton, while lithium hexafluorophosphate was also stable at 180,000 yuan per ton [3] - Prices for battery cells, including LFP energy storage cells, have maintained stability, with specific prices reported for various capacities [3] Demand - In November 2025, the monthly shipment volume of LFP batteries reached 75.3 GWh, marking a year-on-year increase of 43.62% and a month-on-month increase of 11.56%, achieving a new high for the year [4] - The monthly shipment volume of ternary power batteries was 18.2 GWh, with a year-on-year increase of 33.82% and a month-on-month increase of 10.30% [4] - The new bidding capacity for domestic energy storage projects in the first ten months of 2025 was higher than in the same period of 2024, although November's figures fell below the previous year's levels [4] - Exports of Chinese power batteries in November 2025 reached 21.2 GWh, a year-on-year increase of 69.60% and a month-on-month increase of 9.28% [4] Investment Recommendations - The report suggests focusing on companies that are leading in the collaborative layout of power batteries and energy storage, as well as those with strong overseas expansion [5] - Companies to watch include CATL (300750.SZ), EVE Energy (300014.SZ), Xinwangda (300207.SZ), Hunan Youneng (301358.SZ), Rongbai Technology (688005.SH), Tianci Materials (002709.SZ), and Dofluorid (002407.SZ) [5]

Group 1 - Tinci Materials has an annual production capacity of approximately 30,000 tons of LiFSI, with the expected addition ratio in electrolytes rising to 3% to 4% due to the increasing popularity of fast-charging batteries [1] - LiFSI is a core additive for fast-charging batteries due to its high conductivity and thermal stability, and its increased usage will significantly expand market space [1] - As a leading electrolyte manufacturer, Tinci is well-positioned to benefit from demand growth, enhancing its industry influence and profit elasticity [1] Group 2 - Luoyang Molybdenum announced that its subsidiary CMOCLimited plans to acquire 100% equity of the Aurizona gold mine, RDM gold mine, and Bahia complex from Canadian-listed EQX for $1.015 billion [2] - The acquisition of new gold mining assets is expected to optimize revenue structure, diversify cyclical risks, and provide cash flow support for the new energy business [2] - If the project integration is successful and gold prices remain high, it will significantly enhance performance and improve the company's overall risk resistance [2] Group 3 - Siyuan Electric plans to apply for the issuance of H-shares and list on the main board of the Hong Kong Stock Exchange [3] - The funds raised from this issuance will be used for R&D, supply chain construction, management and digital enhancement, overseas expansion, and general corporate purposes [3] - This move aligns with the trend of the power distribution equipment industry going global, helping the company to broaden international financing channels and enhance global brand influence and market competitiveness [3]

Group 1 - The core viewpoint of the article is that Tianqi Materials has an annual production capacity of approximately 30,000 tons for LiFSI, which is expected to increase in usage as fast-charging batteries become more prevalent [1] - The company anticipates that the proportion of LiFSI in electrolyte additives will gradually rise to 3-4% [1]

Core Viewpoint - The solid-state battery industry is experiencing significant investment and market enthusiasm, but there are growing concerns about its safety and the potential for traditional lithium batteries to remain relevant [2][3][20]. Investment and Market Trends - Over 40 investment events related to solid-state batteries have occurred this year, attracting various national and international investors, including major financial institutions and venture capital firms [2][19]. - The solid-state battery index has seen substantial growth, with individual stocks like Shanghai Xiba (SH: 603200) increasing over 241% this year, and a notable trading volume of 16.1 billion on September 5 for Pioneer Intelligent (SZ: 300450) [2][19]. Safety Concerns - Experts are cautioning against the absolute safety claims of solid-state batteries, highlighting that they also have safety risks, particularly in the context of thermal runaway [3][21][22]. - The potential for solid-state batteries to cause more severe incidents if they fail is compared to traditional lithium batteries, which are seen as less dangerous in failure scenarios [21][22]. Technological Developments - The solid-state battery is often touted as the "ultimate form" of lithium batteries, but the industry is witnessing advancements in traditional lithium battery safety through material innovations and structural optimizations [26][27]. - Research is ongoing into flame-retardant additives and surface coating technologies for traditional lithium batteries, which are showing promise in enhancing safety [27][29]. Route Controversy - The solid-state battery technology landscape includes various routes: sulfide, oxide, and polymer, with sulfide being previously viewed as the leading option [31][32]. - Recent developments indicate that other routes, particularly polymer and oxide technologies, are making significant progress and may challenge the dominance of sulfide technology [34].

Investment Rating - The industry investment rating is "Outperform the Market" [2][30]. Core Insights - The demand for power and energy storage lithium batteries is increasing, while lithium material prices are showing differentiation [5]. - In November 2025, domestic battery production reached 176.3 GWh, a year-on-year increase of 49.66% and a month-on-month increase of 3.34% [2]. - The production of lithium iron phosphate (LFP) cathode materials in November 2025 was 268,900 tons, up 29.43% year-on-year and 0.75% month-on-month, with a capacity utilization rate of 62.53% [2]. - The average price of industrial-grade lithium carbonate rose to 94,000 CNY/ton, with a weekly decrease of 3.40% [2]. - The average price of LFP (power type) remained stable at 39,100 CNY/ton as of December 5, 2025 [2]. - The monthly installation of LFP batteries in November 2025 was 75.3 GWh, a year-on-year increase of 43.62% and a month-on-month increase of 11.56% [2]. - The export volume of Chinese power batteries in November 2025 was 21.2 GWh, a year-on-year increase of 69.60% and a month-on-month increase of 9.28% [2]. Summary by Sections Production - In November 2025, the production of positive materials for batteries showed significant growth compared to the same period in 2024 [2][3]. Prices - The prices of key raw materials for lithium batteries have stabilized, with various components showing different price trends [2][3]. Domestic Demand - The domestic demand for lithium batteries is on the rise, with significant increases in monthly installation and new bidding capacities for energy storage projects [2][3]. Overseas Demand - The export of power batteries from China has increased significantly compared to the previous year, indicating strong overseas demand [2][3].

Investment Rating - The industry investment rating is "Overweight" (maintained), indicating that the industry index is expected to outperform the market index by more than 10% in the next six months [4]. Core Insights - In November 2025, the production and sales of new energy vehicles reached new highs, with production and sales of 1.88 million and 1.823 million units respectively, representing year-on-year growth of 20% and 20.6% [3]. - The penetration rate of new energy vehicles in November was 53.2%, up 1.6 percentage points month-on-month, while the cumulative penetration rate from January to November was 47.5% [3]. - The demand for lithium batteries remains robust, with a significant increase in battery production and sales in November, achieving a year-on-year growth of 49.2% and 52.2% respectively [3]. - The report maintains an optimistic outlook for lithium battery demand in the coming year, driven by strong storage demand and the ongoing industrialization of solid-state batteries [3]. Summary by Sections New Energy Vehicle Market - In November 2025, new energy vehicle production and sales reached 1.88 million and 1.823 million units, with year-on-year growth of 20% and 20.6% respectively [3]. - Cumulative production and sales from January to November were 14.907 million and 14.78 million units, with year-on-year growth of 31.4% and 31.2% [3]. - Exports of new energy vehicles in November reached 300,000 units, a year-on-year increase of 2.6 times [3]. Battery Production and Sales - In November, the production of power and other batteries was 176.3 GWh, with a year-on-year increase of 49.2% [3]. - Battery sales in November were 179.4 GWh, with a year-on-year increase of 52.2% [3]. - The sales of power batteries accounted for 74.7% of total sales, with a year-on-year growth of 52.7% [3]. Industry Outlook - The report suggests that the lithium battery industry will continue to see demand growth, particularly in the context of strong storage needs and the advancement of solid-state battery technology [3]. - Key companies to watch include CATL, Yiwei Lithium Energy, and others involved in the solid-state battery supply chain [3].

Group 1 - The company is a global leader in lithium hexafluorophosphate and electrolyte, with a projected global electrolyte shipment of 503,000 tons in 2024, capturing a market share of 35.7%, maintaining the top position for nine consecutive years [1] - The company is expected to benefit significantly from the recent price surge in lithium hexafluorophosphate, which has increased by approximately 248% since mid-July 2023 due to supply-demand dynamics [2] - The company is strategically positioned in solid-state battery core materials, with its sulfide electrolyte currently in the pilot testing phase, aiming for a hundred-ton pilot production line to be completed by mid-2026 [2] Group 2 - The company forecasts net profits of 1.096 billion, 5.402 billion, and 7.387 billion yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 0.54, 2.66, and 3.63 yuan per share [1] - The current stock price corresponds to a PE ratio of 73.7, 14.9, and 10.9 for the years 2025, 2026, and 2027 respectively, indicating a "buy" rating for the stock [1] - The industry is experiencing a tight balance in supply, with the capacity utilization rate at approximately 43.3% in 2024, and limited new capacity expected from leading companies by 2026 [2]

Event Overview - The 2025 (10th) Lithium Battery Industry Annual Conference and Lithium Battery Golden Ding Award Ceremony will be held on December 18-19, 2025, in Shenzhen, focusing on new cycles, technologies, and ecosystems [2] Company Developments - CATL signed a framework supply agreement with Vena Energy to provide 4GWh of EnerX battery energy storage systems, utilizing 530Ah cells with a capacity of 5.6MWh per 20-foot container [5] - XINWANDA established a new subsidiary in Zaozhuang with a registered capital of 300 million RMB, focusing on energy technology R&D, battery manufacturing, and electric vehicle charging infrastructure [6] - DEYI Energy launched a 20GWh power battery project in Dagang Economic Development Zone, with a fixed asset investment of approximately 4 billion RMB [7] - FULIN Technology announced price increases for some products due to rising raw material costs and expanding market demand [8] - DEGA Energy will raise battery prices by 15% starting December 16, 2025, in response to increased production costs [9] - Beijing Weilan New Energy submitted an IPO application to the Beijing Securities Regulatory Bureau [10] - Samsung SDI secured a contract to supply lithium iron phosphate batteries worth over 2 trillion KRW (approximately 9.6 billion RMB) for an energy facility in the U.S. [12] - LG Energy signed a battery supply agreement with Mercedes-Benz valued at 2.06 trillion KRW (approximately 988.6 million RMB) [14] - Tianqi Materials announced a second delay for its lithium-ion battery materials project, extending the completion date to July 31, 2026 [16] - ENJIE signed a memorandum of understanding with Arkema to jointly develop next-generation battery separators [17] - FOSU Technology's acquisition of JINLI Co., Ltd. was approved, with a total transaction value of 5.08 billion RMB [18] - XINZHOUBANG plans to list on the Hong Kong Stock Exchange to enhance its global competitiveness [19] - GUOCHENG Technology intends to acquire FUYUE Technology for 241 million RMB [21] Industry Trends - In November, China's automotive production exceeded 3.5 million units for the first time, with a year-on-year growth of over 10% [31] - NEV exports reached 2.315 million units, doubling year-on-year [31] - The second-generation solid-state electrolyte from XINYUREN has entered battery-level testing [24] - New battery recycling projects are being initiated in Shandong and Anhui, indicating a growing focus on battery recycling and resource recovery [28][29]