Investment Rating - The report does not explicitly state an investment rating for the industry or specific companies, but it suggests a focus on companies involved in the anode-free battery technology, indicating potential investment opportunities. Core Insights - Anode-free battery technology allows lithium ions to deposit directly on the current collector surface, leading to higher energy density and lower costs compared to traditional batteries. However, challenges such as lithium dendrite growth and SEI film stability remain critical issues to address [8][15][19]. - The report highlights significant advancements in the industry, particularly with companies like CATL and BYD, which are developing proprietary technologies to enhance battery performance and stability [8][40][45]. - The report recommends focusing on Zhongyi Technology, which has a strong position in the copper foil sector and is advancing in anode-free technology, particularly with its lithium-copper composite anode materials [8][49][55]. Summary by Sections 1. Anode-Free Technology Concept - Anode-free batteries differ from traditional lithium-ion and lithium metal batteries by not preloading active materials on the anode current collector, allowing for direct lithium ion deposition [11][15]. - This technology offers higher energy density (650 Wh/kg) and lower costs due to reduced reliance on lithium metal [15][19]. 2. Industry Progress of Anode-Free Technology - CATL launched its "self-generating anode" technology in April 2025, achieving a 60% increase in volumetric energy density and a 50% increase in mass energy density [40]. - BYD has patented a porous sponge-like current collector that enhances lithium ion deposition and reduces dendrite growth, significantly improving battery cycle life [45][46]. 3. Related Companies - Zhongyi Technology has been a key player in the copper foil industry for over a decade, focusing on high-performance electrolytic copper foil for lithium batteries and electronic circuits [49][55]. - The company has shown consistent revenue growth, with a notable increase in operating income from 2.197 billion to 4.786 billion from 2021 to Q1 2025, despite fluctuations in net profit due to industry supply and demand dynamics [57][58].