Core Viewpoint - The battery circular economy is emerging as a significant investment opportunity, driven by the global energy circular plan announced by CATL and the Ellen MacArthur Foundation, highlighting the importance of efficient battery recycling and ESG investment principles [1][4]. Group 1: ESG and Battery Circular Economy - Battery companies are increasingly focusing on environmental, social responsibility, and corporate governance, with ESG reports becoming essential for corporate transparency [3]. - The traditional linear model of battery production and disposal poses potential ESG risks, as battery manufacturing accounts for 40% of the carbon footprint in the electric vehicle lifecycle [3]. - The battery circular economy offers a systematic solution to ESG risks by treating retired batteries as "urban mines," allowing for the recovery of high-purity materials like lithium, cobalt, and nickel [3][4]. Group 2: Regulatory Environment and Market Opportunities - The EU's new battery regulation mandates compliance for all batteries sold within the EU, emphasizing the use of recycled materials to reduce carbon emissions and ensure market access [4]. - By 2030, the global retired battery volume is expected to reach approximately 831 GWh, with a corresponding recycling market space of 189.5 billion yuan, indicating a compound annual growth rate of 33% from 2023 to 2030 [6]. - The Chinese government is actively promoting the establishment of a comprehensive recycling system for used batteries, further enhancing the market potential for battery recycling [5][6]. Group 3: Corporate Strategies and Innovations - Leading companies like CATL are restructuring their business models to focus on shared services and efficient recycling systems, aiming to maximize battery utilization and reduce reliance on raw material mining [7]. - Companies with advanced recycling technologies, such as hydrometallurgy and pyrometallurgy, are positioned for significant growth, particularly those capable of efficiently recovering high-value metals [7][8]. - The concept of "second-life" applications for retired batteries, such as energy storage, aligns with ESG principles and presents a blue ocean market opportunity [8]. Group 4: Financial Implications and Policy Support - Higher ESG ratings correlate with better long-term stock performance, indicating that companies with strong ESG practices may experience financial advantages [8][9]. - Recent policies from the People's Bank of China and other departments support the recycling industry, reducing financing difficulties and costs for companies involved in the circular economy [9]. - The future valuation of battery companies will increasingly depend on their ability to extract "regenerative" value from retired batteries, emphasizing the importance of circular capabilities as a key ESG metric [9].

Carbon Neutrality Policy - The Ministry of Ecology and Environment released reports on product carbon footprint and climate change adaptation during the National Low Carbon Day, highlighting significant progress in carbon footprint management with over 70 national standards and 100 group standards by the end of 2024 [2] - The year 2024 is projected to be the hottest on record, necessitating urgent improvements in climate change adaptation capabilities [2] - A public engagement event showcased over 20 low-carbon technologies with significant carbon reduction effects, emphasizing the importance of technology in addressing key challenges [2] Climate Dynamics - The China Meteorological Administration predicts that 2025 will likely be one of the three warmest years on record, with extreme heat events already affecting multiple provinces [4] - The average national precipitation in June was 85.8 mm, which is 3.4% higher than the historical average, indicating a regional imbalance in rainfall distribution [4] - The occurrence of extreme weather events underscores the need for enhanced disaster prevention and low-carbon transition strategies to improve societal resilience [4] Renewable Energy Developments - In May 2025, the National Energy Administration issued 215 million green certificates, a slight decrease of 0.59% from the previous month, with 60.31% being tradable [5] - From January to May 2025, a total of 1.093 billion green certificates were issued, indicating a steady progress in the green certificate trading mechanism that supports renewable energy consumption [5] Local Initiatives - The Shanghai Carbon Inclusive Platform was launched, allowing citizens to track their low-carbon activities and accumulate carbon credits for rewards [7] - The platform aims to create a closed-loop system for low-carbon behavior, enhancing public participation in carbon reduction efforts [7] Corporate Practices - CATL announced its "Global Energy Circulation Plan" during the London Climate Action Week, aiming to promote a circular economy in battery production and reduce reliance on raw mineral resources [8] - The company predicts that by 2040, the global battery recycling market could exceed 1.2 trillion yuan, creating over 10 million jobs in the battery value chain [8] - Achieving 50% of new battery production through material recycling will require technological breakthroughs and collaborative efforts across the industry [8]

Core Insights - During the "London Climate Action Week," the Vice President and Secretary of the Board of Ningde Times, Jiang Li, stated that within the next 20 years, 50% of new battery production globally will move away from mineral extraction [1] - Jiang emphasized that the battery industry chain will drive the energy system towards a more efficient, low-carbon, and sustainable transformation [1] - The concept of a circular economy for batteries is highlighted, aiming to transform the entire lifecycle of batteries from design, manufacturing, usage, to recycling, which will open up vast market opportunities [1] - It is predicted that by 2040, the global battery recycling market size will exceed 1.2 trillion yuan [1]

Industry Information - The former Vice Minister of Industry and Information Technology, Su Bo, suggested that the current fuel vehicle capacity is largely underutilized and recommended mergers and restructuring of fuel vehicle companies to add new energy capacity [4][19] - The latest collision test results from China Insurance Research Institute show that the AITO M9 received the highest rating among historical test models [4] - The Ministry of Commerce reported that as of March 24, the total number of applications for vehicle trade-ins exceeded 1.5 million [12] - The State Council Development Research Center predicts that new energy vehicle sales are expected to reach 17 million units this year, with a market share of nearly 58% for new energy passenger vehicles [19] Policy Information - Hunan aims for new energy passenger vehicles to account for over 40% of total sales by 2025, with over 500,000 charging piles to be built [4] - The Ministry of Finance, Ministry of Industry and Information Technology, and Ministry of Transport announced support for 75 pilot counties to improve charging and swapping facilities by 2025 [18] Company Information - Xpeng Motors has changed its name to include "Group" in its title, indicating a broader business scope [26] - BYD plans to install nearly 200 GWh of blade battery capacity in 2024 [26] - NIO announced a partnership with Beijing Future Science City Development Group to build 100 battery swap stations [32] - NIO's cumulative delivery of the MONA model is expected to exceed 100,000 units, with over 20% of new purchases coming from users of traditional fuel vehicle brands [30] - Xiaomi Group plans to raise HKD 42.5 billion to accelerate its smart electric vehicle development [31] - Chery Automobile will invest USD 1 billion to build an electric vehicle factory in Turkey, with an expected annual capacity of 200,000 vehicles [34]