Core Viewpoint - The article highlights the recovery of the lithium battery mineral resource industry, with Huayou Cobalt's performance indicating a positive trend in the sector, driven by both market demand and strategic resource positioning [2][3]. Industry Overview - In Q3 2025, Huayou Cobalt reported a revenue of 58.941 billion yuan and a net profit of 4.216 billion yuan, marking year-on-year increases of 29.57% and 39.59% respectively, signaling a recovery in the lithium battery mineral resource sector [2]. - The company signed a long-term contract with LG Energy for 164,000 tons of ternary materials over five years, reflecting the growing importance of lithium battery mineral resources in the supply chain [5]. Resource Supply Dynamics - The global cobalt supply has been disrupted by export bans from the Democratic Republic of Congo, leading to a spike in domestic cobalt prices, which reached 390,000 yuan per ton [3]. - Huayou Cobalt's integrated model of "overseas resource development - local smelting - downstream material manufacturing" is becoming a common strategy among leading companies to mitigate price risks and enhance market position [3][10]. Market Demand Trends - The demand for ternary materials is recovering, with shipments increasing by over 20% year-on-year to 580,000 tons in the first three quarters of 2025, driven by expanding end-user applications [7]. - Emerging sectors such as AI robotics and low-altitude aircraft are increasing the demand for cobalt and nickel resources, alongside the acceleration of solid-state battery commercialization [4]. Strategic Resource Positioning - Companies are increasingly favoring regional resource layouts, establishing production bases in mineral-rich areas like Indonesia and Africa to reduce costs and comply with international trade regulations [8]. - Huayou Cobalt's investment in Hungary for cathode material production exemplifies the integration of mineral processing with downstream applications to meet European battery market demands [9]. Profitability Shifts - Industry profits are gradually shifting towards companies with integrated resource capabilities, as lithium prices stabilize and the profit margins in upstream lithium resources diminish [10]. - The overall recovery in the lithium battery mineral resource sector is reflected in the performance of multiple domestic nickel and cobalt resource developers [11]. Future Outlook - The strategic value of cobalt and nickel resources is expected to rise further with the acceleration of solid-state battery development and the expansion of resource demands in emerging fields [11]. - The competition for mineral resources is likely to drive the industry towards more intensive resource utilization, global layouts, and deeper collaborations, marking the beginning of a new cycle in the lithium battery mineral resource sector [12].