Zhejiang Huayou Cobalt Co. Ltd.: Battery‑Materials Market Momentum Reflected in ETF Performance

Zhejiang Huayou Cobalt (HUAYOU), a leading Chinese producer of cathode and cobalt‑based battery materials, has been a focal point in recent ETF trading activity. On December 24, 2025, two battery‑focused exchange‑traded funds – the 景顺 (159757) and the 广发 (159755) – opened higher, with Huayou’s stock posting a 1.44 % gain, contributing materially to the funds’ modest upside.

ETF‑Driven Upswing and Huayou’s Role

  • 景顺 ETF (159757) opened at 0.876 yuan, up 0.23 %. The fund’s top‑holding, Huayou, rose by 1.44 %, outperforming peers such as CATL and BYD, which fell 0.01 % each. The fund’s cumulative performance since July 2021 stands at –12.65 %, yet its most recent month has returned 3.95 %, indicating a recovery in the sector.

  • 广发 ETF (159755) opened at 1.056 yuan, rising 0.09 %. Huayou’s contribution was identical, again outperforming the broader basket. The fund’s long‑term return of 5.50 % and recent one‑month gain of 3.90 % demonstrate sustained investor confidence in battery‑material producers.

Huayou’s 1.44 % rise represents a significant lift for both funds, reinforcing the narrative that domestic battery‑material suppliers are benefiting from renewed demand and upward price pressure in the supply chain.

Market Context: Rising Prices in the Lithium‑Ion Chain

The upward trajectory of Huayou’s share price aligns with broader market trends observed in the lithium‑ion battery sector:

  • Material Price Inflation: December’s market data show a sharp climb in prices for critical battery components such as lithium‑ion electrolytes, VC additives, and FEC. These inputs directly affect production costs and, consequently, the profitability of cathode producers.

  • Positive ETF Performance: The 新能源汽车产业指数 (930997) surged 1.86 % on December 23, driven by gains in key constituents like 天华新能, 天赐材料, and 德福科技. Such momentum spills over into component producers, including Huayou, which supplies cathode materials to the very companies driving the index.

  • Industrial Metal Rally: A broader rally in precious and industrial metals – highlighted by the rise of the 有色50ETF (159652) and the 矿业ETF (159690) – underscores a strengthening macro‑environment for metal‑mining and battery‑materials firms alike.

Forward‑Looking Implications for Huayou

  1. Supply‑Side Advantages: Huayou’s domestic focus and diversified product portfolio—spanning cobalt, nickel‑cobalt‑manganese hydroxide, and lithium products—position it to capitalize on the continued price appreciation of battery‑relevant metals.

  2. Strategic Positioning in the Battery Ecosystem: With battery manufacturers increasingly looking to secure local supply chains, Huayou’s strong presence in Zhejiang and its established customer base provide resilience against global supply disruptions.

  3. Capitalizing on ETF Exposure: The continued bullishness of battery‑themed ETFs suggests that institutional investors will likely sustain or increase exposure to Huayou, supporting its stock price trajectory.

Conclusion

The December 2025 ETF uptick, powered in part by Huayou’s 1.44 % rally, reflects a broader bullish sentiment in the battery‑material sector. Coupled with escalating input prices and a supportive macro backdrop for industrial metals, Zhejiang Huayou Cobalt is poised to maintain its growth trajectory. Investors tracking battery‑related ETFs should monitor Huayou’s performance as a barometer for the health of China’s domestic battery‑materials industry.