The new phase of energy transition begins, with both Battery ETF (561910) and Photovoltaic ETF (516230) being actively promoted.

On March 20, the three major sectors of China’s A-share market showed clear differentiation today. The ChiNext Index led with a strong gain of 1.30%, while the Shanghai Composite Index saw choppy trading followed by a pullback. By 15:00, both the China Merchants Battery ETF (561910) and the China Merchants PV ETF (516230) were up more than 3%.

On the news front, the new-energy battery industry chain has recently received multiple positive signals. In March, production across the lithium battery industry chain has fully rebounded, with expectations for about a 20% month-over-month increase, and overall sentiment continuing to rise. On the price side, battery-grade lithium carbonate prices have returned to above 150,000 yuan/ton, and together with supply disruptions caused by Zimbabwe’s pause of lithium concentrate exports, cost support has strengthened.

The photovoltaic industry chain has also seen a dense run of catalysts recently. In March, overall PV module production rebounded noticeably to 44GW–45GW, up about 28%–29% month over month. Zhongke Tiansuan and Yanhe Technology jointly announced the official release of the prototype space supercomputing system, and successfully completed end-to-end integration and verification of the space computing power system and the perovskite energy system, opening up new application scenarios in the PV industry for space. In addition, Tesla’s “stock-up” of China’s PV equipment: one PV company confirmed that the contract size is at the gigawatt scale.

CICC Securities believes that, against a backdrop of elevated crude oil prices and supply disruption from geopolitical conflicts, the pace of the energy transition is accelerating, the lithium battery sector’s β has arrived, and a clear trend of price increases resonating across all links has emerged. Guoxin Securities stated that, driven by both supply contraction and technological iteration, the PV industry is entering a window for earnings recovery, and suggested seizing opportunities arising from supply-side reform as well as the upside of improving marginal demand expectations.

With the energy transition trend firmly established and industry sentiment continuing to rise, the China Merchants Battery ETF (561910), which deeply covers the entire battery industrial chain, and the China Merchants PV ETF (516230), which brings together leading PV companies, have ample growth momentum.

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