Core Viewpoint - The A-share market experienced a collective decline, while the new energy sector, particularly lithium battery stocks, showed strong performance, indicating potential investment opportunities in this area [1][2]. Group 1: Market Performance - The three major A-share indices opened lower on November 17, with the ChiNext New Energy ETF (159368) experiencing a maximum increase of 0.64% [1]. - The lithium battery sector performed robustly, with Tianhua New Energy surging over 16% to reach a historical high, and other companies like Defang Nano, Penghui Energy, and others also showing gains [1]. Group 2: Company Developments - On November 16, Rongbai Technology announced a sodium battery cooperation agreement with CATL, designating Rongbai as the primary supplier of sodium battery cathode materials, with a commitment for annual procurement of at least 60% of the total volume [1]. - The agreement is valid until the end of 2029 and will automatically renew unless disputed, marking an upgrade in collaboration from ternary lithium batteries to sodium batteries [1]. Group 3: Industry Insights - According to Wukuang Securities, sodium-ion batteries possess theoretical high-rate and good low-temperature performance advantages, indicating potential market space in specific applications such as start-stop power sources and in northern low-temperature regions [2]. - The ChiNext New Energy ETF (159368) is the largest ETF tracking the ChiNext New Energy Index, which encompasses various sectors including batteries and photovoltaics, with a significant focus on storage and solid-state batteries [2].

Core Viewpoint - The lithium mining sector experienced a strong surge on the 17th, driven by robust investment in energy storage, which is expected to significantly boost lithium battery demand in the coming years [1] Group 1: Market Performance - Tianhua New Energy rose over 15%, while Shengxin Lithium Energy and Jinyuan Co. hit the daily limit, and major mining companies like Zhongjin Resources and Tianqi Lithium approached the limit as well [1] - Ganfeng Lithium increased nearly 8%, indicating a strong market sentiment towards lithium-related stocks [1] Group 2: Industry Growth Drivers - Institutions noted that the domestic energy storage sector is reaching an economic inflection point, with investment being particularly vigorous due to the marketization of new energy and capacity pricing [1] - The cumulative penetration rate of energy storage remains below 10%, prompting an upward revision of the expected new installations in China to 300 GWh for next year [1] Group 3: Demand Forecast - Energy storage is projected to drive lithium demand growth exceeding 30% next year, creating investment opportunities across materials, batteries, and integration sectors [1] - According to the ICC Xinluo Energy Storage Database, global energy storage battery shipments are expected to reach 428 GWh from January to September 2025, marking a year-on-year increase of 90.7% [1] Group 4: Supply Chain Insights - The demand for domestic energy storage cells is currently very strong, with leading companies like Haitian Energy and Yiwei Lithium Energy having order backlogs extending to 2026, necessitating some orders to be fulfilled by mid-tier companies [1] - The rapid growth of the energy storage industry is driving high demand for lithium batteries, with recent data showing a 1.5% month-on-month increase in battery production among sample companies [1] - The upstream materials in the lithium battery supply chain, such as lithium hexafluorophosphate, electrolytes, and separators, have seen price increases due to strong downstream demand [1]

Group 1 - Companies Rongbai Technology and Tianhua New Energy saw stock increases of over 10% [1] - Fengyuan Co. reached the daily limit increase in stock price [1] - Other companies such as Dazhong Mining, Shengxin Lithium Energy, and Rongjie Co. also experienced stock price increases [1]

Group 1 - The price of lithium iron phosphate (LFP) has rebounded, increasing by approximately 10% since October, driven by strong demand from automakers and battery manufacturers, as well as a surge in global energy storage needs [1] - Major companies have their LFP orders booked until the first half of next year, with production lines operating at full capacity [1] - The rapid development of new technologies, such as high-voltage LFP, is prompting midstream material companies to upgrade their technologies and adjust their production capacity structures [1] Group 2 - As of October 31, 2025, the CSI New Energy Vehicle Industry Index (930997) includes 50 listed companies involved in various sectors of the new energy vehicle industry, reflecting the overall performance of leading companies in this sector [2] - The top ten weighted stocks in the index account for 53.56% of the total index, with companies like CATL, BYD, and Ganfeng Lithium among the leaders [2][4] Group 3 - The CSI New Energy Vehicle Industry Index has shown a strong performance, with a 1.23% increase, and individual stocks like Rongbai Technology and Tianhua New Energy seeing significant gains of 20% and 13.13% respectively [1][2] - The New Energy Vehicle ETF (515700) has also benefited from the recovery in lithium battery market sentiment, rising by 1.05% [1]

Investment Rating - The report maintains an "Overweight" rating for the non-ferrous metals sector [1]. Core Views - The non-ferrous metals sector saw a weekly increase of 1.07% from November 10 to November 14, outperforming the overall market index [14]. - Precious metals, particularly gold, are expected to maintain a bullish outlook in the medium term despite short-term fluctuations due to changing interest rate expectations [4][49]. Summary by Sections Market Review - The Shanghai Composite Index fell by 0.18%, while the non-ferrous metals sector ranked 16th among 31 sectors, outperforming the index by 1.25 percentage points [14]. - Precious metals increased by 2.77%, energy metals by 2.47%, and industrial metals by 1.56%, while small metals and new materials declined by 1.42% and 3.22%, respectively [14]. Industrial Metals - **Copper**: Prices rose with LME copper at $10,846 per ton (up 1.41%) and SHFE copper at ¥86,900 per ton (up 1.12%). Supply remains weak, with Codelco's September production down 7.2% year-on-year [2][31]. - **Aluminum**: LME aluminum reached $2,859 per ton (up 1.41%), driven by increased demand from the electric vehicle sector, where sales exceeded 50% of total new car sales in October [3][35]. - **Zinc**: Prices fell with LME zinc at $3,015 per ton (down 1.70%) and SHFE zinc at ¥22,470 per ton (down 1.30%). Zinc inventories increased, indicating a bearish trend [41]. - **Tin**: LME tin rose to $36,860 per ton (up 2.90%) due to reduced exports from Indonesia, which halved in October [45]. Precious Metals - **Gold**: COMEX gold closed at $4,084.40 per ounce (up 1.91%), while SHFE gold was at ¥953.20 per gram (up 3.47%). The resumption of U.S. government operations alleviated liquidity concerns, boosting prices [4][49]. - The Federal Reserve's hawkish comments and the lack of supporting economic data have led to a decrease in December rate cut expectations from 95% to around 50%, causing some price corrections in precious metals [50]. Inventory Changes - Copper inventories decreased, with LME at 135,700 tons (down 0.13%) and SHFE at 109,400 tons (down 4.89%) [29][34]. - Aluminum inventories increased slightly, with LME at 552,400 tons (up 0.57%) and SHFE at 114,900 tons (up 1.38%) [35].

Core Insights - The New Materials 50 ETF (516710) increased by 0.29%, with significant gains in constituent stocks such as Tianhua Xinneng rising over 10%, Nanda Optoelectronics over 6%, and Jinfatech over 5% [1] Industry Overview - The "14th Five-Year Plan" suggests the development of emerging pillar industries, accelerating the growth of strategic emerging industry clusters in areas such as new energy, new materials, aerospace, and low-altitude economy, which could create several trillion-yuan markets [1] - According to Guoyuan Securities, new materials are crucial for new industrialization, and during the "14th Five-Year" period, materials like rare earth magnetic materials and tin-tungsten minor metals, which are critical, will receive policy support amid increasing international competition [1] Market Potential - These critical materials are not only essential for aerospace but also meet the demands of new energy batteries and high-end equipment industries, indicating that the market size will continue to expand alongside the development of downstream clusters [1] - The New Materials 50 ETF closely tracks the CSI New Materials Theme Index, which selects 50 listed companies involved in advanced steel, non-ferrous metals, chemicals, inorganic non-metals, and other key strategic materials to reflect the overall performance of new materials theme stocks [1]

Group 1 - Tianhua New Energy's stock price increased by 6.61%, reaching 53.10 CNY per share, with a trading volume of 1.29 billion CNY and a turnover rate of 0.36%, resulting in a total market capitalization of 441.13 billion CNY [1] - Suzhou Tianhua New Energy Technology Co., Ltd. was established on November 13, 1997, and went public on July 31, 2014. The company's main business involves the production and sales of new energy lithium battery materials, anti-static ultra-clean technology products, and medical devices [1] - The revenue composition of Tianhua New Energy is primarily from lithium battery materials, accounting for 99.10%, while other products contribute 0.90% [1] Group 2 - Among the top ten circulating shareholders of Tianhua New Energy, a fund under GF Fund ranks first. The GF Guozheng New Energy Vehicle Battery ETF (159755) entered the top ten in the third quarter, holding 6.3451 million shares, which is 0.94% of the circulating shares [2] - The GF Guozheng New Energy Vehicle Battery ETF (159755) was established on June 15, 2021, with a latest scale of 15.097 billion CNY. It has achieved a return of 71.96% this year, ranking 140 out of 4216 in its category, and a return of 55.03% over the past year, ranking 202 out of 3956 [2] - The fund manager of GF Guozheng New Energy Vehicle Battery ETF is Luo Guoqing, who has a cumulative tenure of 10 years and 39 days, with the fund's total asset scale at 104.711 billion CNY. The best fund return during his tenure is 79.2%, while the worst is -48.08% [2]

Core Viewpoint - The lithium battery sector is experiencing strong performance, with significant gains in stock prices for several companies as of November 17 [1] Group 1: Company Performance - Rongbai Technology has seen its stock price increase by over 15% [1] - Tianhua New Energy's stock price has risen by more than 13% [1] - Fengyuan Co., Ltd. has reached its daily limit up [1] - Other companies such as Dazhong Mining, Shengxin Lithium Energy, and Rongjie Co., Ltd. are also experiencing upward trends in their stock prices [1]

Group 1 - The lithium mining sector is experiencing a strong rally, with companies like Dazhong Mining achieving a remarkable 14 consecutive trading days of gains [1] - Tianhua New Energy has seen an increase of over 10% in its stock price, indicating positive market sentiment towards the company [1] - Other companies in the sector, such as Yongxing Materials, Rongjie Shares, Zhongkuang Resources, and Shengxin Lithium Energy, are also showing significant price increases [1]

Group 1 - Tianhua New Energy's stock increased by 5.12%, reaching 50.50 CNY per share, with a trading volume of 3.846 billion CNY and a turnover rate of 11.71%, resulting in a total market capitalization of 41.953 billion CNY [1] - The company, Suzhou Tianhua New Energy Technology Co., Ltd., was established on November 13, 1997, and went public on July 31, 2014. Its main business involves the production and sales of new energy lithium battery materials, anti-static ultra-clean technology products, and medical devices [1] - The revenue composition of Tianhua New Energy is heavily weighted towards lithium battery products, accounting for 99.10% of total revenue, while other products contribute 0.90% [1] Group 2 - Among the top ten circulating shareholders of Tianhua New Energy, a fund under GF Fund Management has entered the list, specifically the GF Guozhen New Energy Vehicle Battery ETF (159755), which acquired 6.3451 million shares, representing 0.94% of circulating shares [2] - The GF Guozhen New Energy Vehicle Battery ETF was established on June 15, 2021, with a current scale of 15.097 billion CNY. It has achieved a year-to-date return of 76.21%, ranking 141 out of 4216 in its category, and a one-year return of 53.38%, ranking 208 out of 3955 [2] - The fund manager of GF Guozhen New Energy Vehicle Battery ETF is Luo Guoqing, who has been in the position for 10 years and 36 days, managing a total fund size of 104.711 billion CNY, with the best fund return during his tenure being 83.44% and the worst being -48.08% [3]