The strong fundamentals combined with energy security catalysts are driving a robust boost in the battery sector.

On March 26, the battery sector strengthened across the board in the morning session, with sector stocks collectively surging. As of 2 PM, the battery sector rose by 1.00%. In terms of individual stocks, Haike Xinyuan (301292.SZ) increased by over 15%, Shida Shenghua (603026.SH) hit the daily limit, Hua Sheng Lithium Battery (688353.SH) and Zhongyi Technology (301150.SZ) rose by over 8%, while Tianji Co., Ltd. (002759.SZ), Huabao New Energy (301327.SZ), and Putailai (603659.SH) increased by over 5%, indicating a significant rise in capital allocation willingness. The fundamentals of the battery industry continue to show high prosperity, further boosted by strong catalysts from energy security themes, making the sector a key focus in the current market.

At the industrial level, dual logic resonance continues to validate the sector’s prosperity. From a fundamental perspective, the industry’s prosperity continues to be revised upwards, with April’s order production further adjusted upward based on March’s high prosperity. The supply-demand pattern in the industry has become quite tight, with core support coming from global energy storage policies driving high demand growth and the significant increase in recognition and rapid sales growth of domestic new energy vehicles overseas. In terms of thematic catalysts, the battery segment, including energy storage, deeply benefits from the global energy substitution wave. The significant rise in global oil and gas prices after the US-Iran war has further accelerated the trend of energy substitution, and with continuous support from various countries’ policies and funding, the industry’s long-term growth potential has been further unlocked.

Currently, the battery sector’s high prosperity is highly certain, and its allocation value is evident. To seize the upward opportunities in the industry, two ETFs under E Fund can be considered: Battery ETF E Fund (159175), which comprehensively covers the entire industrial chain of battery upstream, midstream, and downstream, making it a highly representative battery-themed ETF product in the market; and Energy Storage Battery ETF E Fund (159566), focusing on core segments of energy storage batteries, covering subfields such as battery manufacturing, energy storage system integration, liquid cooling, and inverters, with a product scale of nearly 8 billion yuan, recently experiencing significant capital inflows for increased holdings, providing investors with a convenient one-click allocation channel.